In this connection, the issuance of a standard framework for the derivation of the rate of return in Islamic banking business has an important role in addressing the information asymmetry between the Islamic banking institutions and the depositors so as to ensure depositors receive their appropriate share of returns on the investment. In addition, the issuance of the guidelines on the model financial statement for Islamic banks will provide for greater disclosure on the risk and return profiles of the different categories of deposits. This will enable depositors to obtain the true and fair assessment of the Islamic banks’ financial performance and hence, promote confidence and strengthen the competitiveness of the Islamic financial industry. Enhanced financial disclosure needs to be complemented by customer education and awareness programmes to elevate the level of financial literacy of consumers and businesses to be able to make informed financial decisions and instill market discipline amongst financial players. The launching of the Consumer Education Programme and the organization of the Islamic Banking and Takaful Week are aimed at achieving these objectives. These programmes have contributed to enhance the understanding and appreciation of the unique characteristics of Islamic banking and finance, Islamic financial products and services and their underlying Shariah principles and concepts.
This double whammy effect, attributed to the narrowness of the Swiss franc market, was highly penalizing for our export sector. Since the introduction of the euro however, this pattern is no longer observed. Thus, the evolution of the Swiss franc sticks closer to our economic fundamentals. I will address this issue more extensively later on and argue that this trend can be generalized to apply to other currencies as well. b)  The euro as a means of payment  Those who thought that the euro would make the Swiss franc obsolete as a means of payment were also mistaken. True, our ATM machines have been adapted to provide euro banknotes, so that it is now possible to pay in euro almost everywhere in Switzerland. Yet, despite these efforts, the demand for euro notes is still weak and those notes do not circulate any more extensively than French francs, Italian lira and German marks used to. In stores and restaurants, prices denominated in euros are usually not very attractive. Obviously, small shop and café owners are not thrilled by the idea of  2  BIS Review 70/2004  accepting cash payments in euros. Anyway, they cannot offer as good financial services as commercial banks or credit card companies! c)  Monetary autonomy  The last fear we had was related to the potential loss of monetary autonomy. Could Switzerland, a country completely surrounded by the euro zone, possibly hope to implement an interest rate policy different from the one of the European Central Bank?