Now that we have demonstrated that we have monetary control even with a very large balance sheet, I would hope that this issue has been put to rest. As I noted earlier, I am a committed advocate for enhanced transparency and we are always looking for ways to improve. But, of course, there are limits. One could argue, for example, that a live broadcast of a Federal Open Market Committee meeting would be more transparent. But, such a broadcast would do considerable harm by constraining candor and debate over the appropriate monetary policy decision. I believe it would likely lead to less informed decisions and, consequently, poorer execution of our monetary policy responsibilities. Similarly, disclosing in real time who was borrowing from the Federal Reserve’s Discount Window would likely undercut the efficacy of the window. Banks might be reluctant to borrow if it were immediately made public because such borrowing might be construed in the market as a sign of weakness. 19 Stigmatizing Discount Window use by banks would make this tool less effective as a lender of last resort backstop for bank liquidity needs. While there obviously is a point of diminishing returns in terms of increased transparency, I think it’s reasonable to evaluate what further steps the Federal Reserve could make in this direction, judging whether additional steps would enhance versus diminish the effectiveness of our tools and policies, and our ability to achieve our objectives.
Zeti Akhtar Aziz: Expanding further understanding of Islamic finance Welcoming remarks by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the INCEIF's (The Global University in Islamic Finance) Public Lecture by Dr Abbas Mirakhor, the First Holder of INCEIF Chair of Islamic Finance, Kuala Lumpur, 29 January 2010. *  *  *  It is my great pleasure to welcome you to the INCEIF's Inaugural Public Lecture by Dr Abbas Mirakhor, a distinguished scholar and the first holder of the INCEIF Chair of Islamic Finance. The INCEIF Public Lecture Series aims to provide a forum for promoting intellectual engagement to discuss the issues, developments and challenges in the area of Islamic finance. The global financial crisis that has dominated the headlines across the world for more than two years has brought to the forefront the fundamental issues in the international financial system that need to be addressed. Now, as the growth prospect resumes, the debate is focussed on the priorities and direction needed to reshape the post crisis world to ensure that the recovery will be sustainable. While Islamic finance has demonstrated its resilience during this period, the industry is now entering into an environment that is fundamentally different in this post crisis era. The international financial reform agenda will result in new structures, standards and regulatory regimes for the global financial industry. Greater financial inter-linkages and integration will also require greater cooperation and collaboration in the endeavour to preserve global financial stability.