It is also encouraging to note that rating agencies have come forward to formulate rating methodology and review for takaful operators. Third area relates to the need for joint effort to shape prudential rules for takaful. For the formulation of prudential standards, the setting up of the IFSB remained one of the landmark developments in this decade. Established in 2002, the IFSB's core role is to promote prudent, transparent and robust development of the Islamic financial services industry through the promulgation of international prudential standards that are consistent with the principles of Shariah. The IFSB provides the platform for cooperation among the regulators through meetings, conference and the setting-up of working groups that give  BIS Review 95/2007  3  opportunity for the regulators to discuss and exchange information on issues confronting Islamic finance. For takaful industry, two developments are relevant that are: i.  the issuance of Issues Paper jointly by IFSB and IAIS on the applicability of IAIS core principles to takaful, and  ii. the formation of a working group to formulate corporate governance standard for takaful industry. In view that the formulation of the IFSB standards involves consultation with IFSB members, I would like to call more takaful operators to be members of the IFSB so as to provide the opportunity for the players to be part of the official consultation procedure for IFSB and to make comments on draft IFSB standards.
The forthcoming implementation of Basel II framework also underlines the need to address practical policy issues of supervisory cooperation. 4  BIS Review 81/2006  Are ROEs peaking? Finally, I would like to make my personal bet to the question of the day, "Are ROEs peaking?" I cannot quote the classics as a saying that "sky is the limit" proved wrong some 15 years ago just here in Sweden. At the same time, when one wants to believe the story of an unusually long economic cycle in the region I would say that the return-on-equity has not peaked but stabilised. But of course, as we all know, there is always a factor of uncertainty in every forecast - beauty as a prudence is in the eyes of a beholder. Ladies and Gentlemen: Thank you for your attention. BIS Review 81/2006  5