A further initiative during the same year was the introduction of the Islamic Financial Stability Forum (IFSF), set up in 2010 to further solidify the global efforts in areas that will contribute towards safeguarding financial stability. Deliberations on wide ranging issues that pertain to risks to financial stability in the Islamic financial system have taken place at this forum. Greater awareness on issues relating to regulation and supervision of Islamic finance have also been raised at international meetings, conferences, seminars, workshops and other dialogues that have been organised by the IFSB in many countries across several continents. BIS central bankers’ speeches  1  The initiatives and milestones achieved by the IFSB have indeed paved the way for jurisdictions across the globe to build a solid foundation for the progressive growth of Islamic finance that is underpinned with stability. Additionally, the early recognition by the IFSB of the increasing interconnectivity in a financial system, the IFSB, unlike other prudential standard setting bodies, has advanced its mission through the development of prudential standards for a broader coverage that includes the banking, capital market and insurance or takaful sectors. The prudential standards issued by the IFSB takes into account the specificities of Islamic finance and the dynamics of the various Shariah contracts used in the wide ranging products offered by Islamic financial institutions. It is within this context that Islamic financial institutions are able to perform its role more effectively as financial intermediaries that are differentiated from its conventional counterparts.
Chart 11: Alternative scenarios a) GDP growth Percentage changes on a year ago 4.0 3.5 3.0 Stronger investment scenario  2.5 2.0 1.5  May 2018 Inflation Report central projection  Weaker consumption scenario  1.0 0.5 0.0 -0.5 -1.0  2012  2013  2014  2015  2016  2017  2018  2019  2020  2021  b) Inflation Per cent 4.0 3.5 May 2018 Inflation Report central projection  3.0 Stronger investment scenario  2.5 2.0  2% target Weaker consumption scenario  1.5 1.0 0.5 0.0 -0.5 -1.0  2012  2013  2014  2015  2016  2017  2018  2019  2020  2021  18  In this scenario, consumers increase saving rates back towards pre-crisis levels, so that quarterly consumption growth is only around 0% – ¼% compared with ¼% – ½% in the May 2018 Inflation Report projections. 17  All speeches are available online at www.bankofengland.co.uk/speeches  17  c) Excess supply / demand Projections 2018 Q2  2019 Q2  2020Q2  2021 Q2  May Inflation Report central projection  -¼  0  0  ¼  Weaker consumption scenario  -¼  -½  -¾  -¾  Stronger investment scenario  -¼  ¼  ½  1  Notes: Per cent of potential GDP.