There is nothing unfair in comparing Italy to Spain in June and July 2012. The situation was very similar. We were very close, we were on the edge…  The situation was the same and the two countries took two different paths. Spain decided to take an EU programme for the banks, whereas Italy committed itself to making it on its own. Do you think that decision explains the divergence between the two countries since then? Again, I don’t want to make a direct comparison. The situation in Spain in 2012 was different – the government had an absolute majority in Parliament, we were lucky in that. And the clean-up of banks in Spain was far-reaching. It was not easy; it was bloody, I can assure you. But we did it and, after that, we were able to deal with an issue like Banco Popular. That was not easy, either. Then, Spain gained a lot of competiveness because of labour market reforms. Those are the two factors. But I don’t want to make a comparison with Italy. I am only focusing on Spain now. By 2013 Spain had started to grow again, and it has outperformed its peers for the last five or six years. So do you think frontloading that effort paid off? Yes, I think so. In Spain there was a government with an absolute majority, but even then we had a difficult time, politically speaking, after that.
Your input has been valuable in designing the strategies and approach to advance VBI as a key thrust in propelling the Islamic finance industry further forward. Today, I would like to share some of my thoughts on the concept of value-based intermediation. I will begin by giving an account of the achievements of our industry within the past decades. I will then touch on the role of VBI as a catalyst for growth with positive impact and the call for Islamic finance to lead the way in realising the visions and objectives of VBI. Islamic finance in Malaysia has evolved and grown by leaps and bounds over the last 30 years. Today, we have a well-developed and regulated Islamic finance industry. There are diverse industry players, both local and foreign. Prior to 2000, there were only two Islamic banks and two takaful operators in the country with total market share and takaful penetration rate of less than 5%. Islamic banking assets have now grown to capture more than a quarter of the total banking system while the takaful sector has increased its penetration rate to 14.6% of the population. This is indeed very good progress. In the sukuk segment, Malaysia is also the market leader with market share of more than 50% in sukuk outstanding since year 2000. On the Bank’s part, the Islamic Financial Services Act 2013 was introduced to modernise our regulatory and legal framework in adapting to changing needs of the industry.