As a result, the 1-year interbank market has converged to the level of the US 1-year market rate. What type of financial regulation framework are we moving towards? The current crisis has highlighted certain failures in financial regulation and this is why, beyond the immediate measures I have just described, an ambitious agenda to reform financial regulation has been launched. This overhaul is crucial for laying the foundations of a more stable financial system. It should not be implemented in a hasty manner if we want to avoid hurting the recovery from the crisis. The G20 has laid down clear principles to guide the overhaul of financial regulation. They mainly cover three areas: the strengthening of prudential standards, the redefinition of the scope of regulation and the revision of accounting standards. Before bringing up these three dimensions, I would like to point out that the G20 Action Plan imposes a requirement for all stakeholders concerned with financial stability: how to better assess the risks facing the financial system as a whole? On this point, you will agree with me that systemic risk is THE risk that we need to take better account of. We have not been able to identify it, control it, or capture it in prudential terms. In many respects, systemic risk is the result of liquidity risk, leverage, compounded by financial innovation and high transformation risks. These factors are not easy to measure at the level of individual banks.
These include: supply chain finance, which enables businesses particularly SMEs, to leverage on the creditworthiness of their anchor suppliers or buyers who are mainly MNCs, to obtain financing at a more affordable rate which may not be possible through direct approach with banks; coverage in takaful products at competitive prices, which for example include coverage for loss or damage to goods shipped on all types of conveyances from manufacturing to trading; the Investment Account Platform or IAP, established by six Islamic banks in 2016 as the world’s first Islamic bank-intermediated fintech platform that offers more competitive financing terms and variations in financing structures for ventures. To date, the IAP has supported eight ventures worth RM161.3 million; and sukuk as an alternative form of financing for businesses, such as green sukuk for green 1/3  BIS central bankers' speeches  businesses. To date, five green sukuk have been issued by Malaysian solar companies to finance solar power projects, amounting to RM866.8 million since July 2017. These are but a flavour of what Islamic finance can offer and I am sure you will hear about many more today. National policy for nurturing SMEs At the national level, the government is indeed supportive of the role of Islamic finance as an important tool to assist businesses and SMEs to flourish. Developing Islamic finance and the growth of SMEs are key national strategies, as reflected in the recent 2019 Budget. The SME Shariah-Compliant Financing Scheme of RM1 billion was established to strengthen SMEs.