To further enhance this facility, with immediate effect: a)  3  We will accept AAA-rated $ debt securities issued by sovereigns, supranationals and sovereign-backed corporates as collateral in the Standing Facility in addition to SGS. Given this change, we will also permit banks to treat these securities as Tier 2  Conducted US-based recruitment firm Hudson. BIS Review 91/2009  3  liquid assets, with the same zero risk weighting as SGS. This will help banks to better manage their risks and liquidity profiles. b)  We will also enter into cross-border collateral arrangements with other central banks to accept well-rated foreign currencies and government debt securities as collateral in the Standing Facility. Last month, I signed an MOU with the Governor of De Nederlandsche Bank N.V., the Dutch Central Bank. Discussions are ongoing with several other central banks. Globally, government bond issuance is rising while banks’ balance sheets which are typically used to underwrite these issuances are shrinking. We have seen in some jurisdictions several instances of poor or even failed auctions of government bonds due to unexpectedly weak sentiment or concerns about ballooning government debt and fiscal deficits. Singapore is different. The Government does not issue bonds to finance its budget deficit. Investors understand that the Government issues SGS for the sole purpose of building a risk-free yield curve for the corporate sector to price its debt. But the SGS market can be affected by contagion of weak sentiment spilling over from other markets.
Therefore, it is important for the Islamic financial services industry to continually promote human capital development and expertise to create a larger pool of experts and high calibre professionals. This involves attracting not only the existing talent pool, but also building a robust pipeline of skilled human resources for the future. This is vital to drive the development of the industry to greater heights. Ladies and Gentlemen, On this occasion of the official launch of Hong Leong Islamic Bank Berhad, it is with pleasure that I congratulate Hong Leong Bank Berhad for its interest and commitment to contribute to the success of Islamic finance by allocating resources in having a dedicated subsidiary to drive its Islamic banking business forward. The establishment of the Islamic subsidiary is a positive step forward in the aspiration of making Malaysia as a leading and attractive integrated Islamic financial hub. I wish Hong Leong Islamic Bank Berhad every success in its endeavours. Ladies and Gentlemen, Dengan lafaz Bismillahirrahmanirrahim, saya dengan sukacitanya merasmikan pelancaran "Hong Leong Islamic Bank Berhad". Terima kasih. 2/2