Norges Bank concurs with this view. Using the fund to attain policy objectives such as environmental, foreign, regional or industrial policy goals may easily come at the expense of high, long-term returns. The other area I would like to address is the division of responsibilities in the governance model. It must be explicit, with a clear division of roles and responsibilities. The current governance model for the GPFG is based on a delegation of responsibilities and powers from one level to another. A control and supervisory line runs in parallel from the manager upward to the Storting. Regardless of whether the fund remains under the aegis of the Bank or is organised in a separate entity, its governing bodies and management must be held to account. This also requires that the parties at the various levels in the governance hierarchy respect the powers and delegated authority actually conferred on them. A lack of clarity in decision-making responsibility may adversely affect investment management in the long term. The third potential pitfall concerns the composition of the board of a new management entity. The Central Bank Law Commission emphasises that such a board must have expertise in finance and investment management, but also expertise beyond the purely financial. In Norges Bank’s experience, a sound understanding of the GPFG’s role in the Norwegian economy and in economic policy is important for the board in discharging its tasks, and not least important in filling the role of key adviser to the Ministry on matters concerning the mandate and investment strategy.
Zeti Akhtar Aziz: Talent development in Islamic finance over the next decade Keynote address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Launching of IBFIM’s Islamic Finance Qualification Framework & Progression Route (IFQFPR) “Talent development in Islamic finance over the next decade”, Kuala Lumpur, 14 December 2011. *  *  *  In a highly dynamic, rapidly changing and challenging environment, talent development for the financial services industry has become an even more important agenda to ensure that its growth and development is supported by the necessary skills and capabilities. This is particularly important for Islamic finance given that it has become the most rapidly growing segment in our financial system. With the increased pace of the internationalisation of Islamic Finance, this growth momentum is also taking place in several other jurisdictions. This current global financial crisis which has highlighted the importance that the growth of the financial sector should correspond with the growth of the economy and for risk management and governance practices to be strengthened to ensure its stability and sustainability has also prompted increased interest in Islamic finance. These are the very principles and foundations inherent in Islamic finance. Talent as a thrust for industry advancement The development of the Malaysian Islamic financial system, has now evolved our Islamic finance industry into a progressive, comprehensive and competitive component of the overall financial sector.