Not least, Islamic banking continues to grow  1/4  BIS - Central bankers' speeches  further with more institutions adopting an Islamic-first strategy. With the growth of the assets comes the demand for corresponding Shariah-compliant investing and treasury services. These factors point to another area where we believe to be important in further advancing Malaysia as an international Islamic financial centre. The development of a vibrant Islamic financial market, in particular the ringgit Islamic financial market. Currently, Islamic money market volume already accounts for 38% of the total turnover in the money market while total trading volume has increased steadily over the years to RM5.9 trillion in Islamic money market as at end of 2021 (2020: RM4.91 trillion). Commodity Murabahah has been the predominant instrument in the Islamic money market with a 92.7% composition, followed by Qard Acceptance (5.6%), Negotiable Instrument of Deposits (1.2%) and others3. The overall bond market (including sukuk market) continued to grow with outstanding bond and sukuk growing at 8% in 2021 to RM1.7 trillion4. Turnover of debt securities and sukuk remained robust at RM1.87 trillion as of end-2021, with average daily secondary bond trading volume of RM3.8 billion. To date, Malaysia remains the biggest global sukuk market with a share of 52% of total outstanding sukuk and 42% share of global sukuk issuances as of end-20215. These are very good achievements - a strength that we can further build upon.
This helps identify areas where there is an apparent mismatch - for example where a particular business line is assessed as “high” risk but the risk control is assessed as “weak”. Appropriate follow-up action would then be conducted. I’ve gone into quite a lot of detail on this to make the point that the dialogue between the banks and supervisor in Hong Kong already currently focuses on the full range of risks, even though only a small sub-set of these risks are currently addressed in the capital framework. So, as I said before, Hong Kong is quite well advanced in this area. As time goes on, however, we would expect to see the banks themselves doing more of this analysis and the supervisors less. Indeed, in time we would expect at least the larger banks to have a fairly well-developed process for assessing all the risks inherent in their business, the quality of the management of these risks, and ultimately how much capital they need to hold in respect of these risks. The second area I mentioned in which we can expect to see some developments is the increased used of quantitative techniques, including modelling and stress-testing. Again, this is something that is already happening, but is something to which Basel II will give added impetus. The most obvious area for this, of course, is credit risk, where we can expect to see banks making greater use of credit scoring models, and in particular models to estimate probability of default.