Restoring Financial Stability Towards More Proactive Regulation World Islamic Banking Conference Mahnaz Bahrami Dec.2009 Bahrain Central Bank of The Islamic Republic of Iran

Titles: 1)Importance of compatible regulatory regimes 2)The linkage between banking soundness and monetary policy 3)Substantial differences in regulatory process 4)Coordinate national and international supervision 5)Financial crisis and Islamic finance 6)Regulatory process for IFS 7)Factors affecting Islamic money markets

1)Importance of compatible regulatory regimes: Growth in financial innovations Growth in financial markets Developing in capital standards Promoting greater competition

2)The linkage between banking soundness and monetary policy: Promotion of economic growth Financial stabilization Fiscal transparency Supportive monetary policy

3)Substantial differences in regulatory process: State-owned banks Country infrastructure Accounting systems Financial conglomerates

4)Coordinate national and international supervision: Adopt effective regulatory framework Improve supervisory autonomy and authority

5)Financial crisis and Islamic finance: Ability of IFS to deal with crisis Potential risks for IFS in crisis

6)Regulatory process for IFS: Universal banking model Transformation of risks Real estate activities Management of investment accounts Framework for corporate governance

7)Factors affecting Islamic money markets: Payment settlement systems Monetary and exchange policy instruments Development of a liquid market