Risk management means assessing the forward-looking disclosures to judge the resilience of firms’ strategies to the transition. 6 The full list of current TCFD supporters is available at: https://www.fsb-tcfd.org/tcfd-supporters/. 7 https://www.weforum.org/press/2020/01/measuring-stakeholder-capitalism-world-s-largest-companies-support-developing-core-set-of-  universal-esg-disclosures/. 8 https://www.wbcsd.org/Programs/Redefining-Value/External-Disclosure/TCFD. 9 Scope 1 means all direct emissions from the activities of an organisation. Scope 2 means indirect emissions from electricity purchased and used by the organisation. Scope 3 means all other Indirect emissions from activities of the organisation, occurring from sources that they do not own or control. 4  All speeches are available online at www.bankofengland.co.uk/news/speeches  4  To this end, the Bank of England will become the first regulator to stress test its major banks and insurers against different climate pathways, including the catastrophic business-as-usual scenario, the ideal - but still challenging - transition to net zero by 2050, and the late policy action - or climate Minsky moment – scenario that could bring a sudden recognition of the scale of stranded assets and the economy-wide disruption that a delayed and disorderly transition will bring.10 Our stress test of the world’s leading international financial centre will show how major financial firms expect to adjust their business models, as well as the potential collective impact of these responses on the wider economy. The stress test will reveal the financial firms - and by extension the companies - that are preparing for the transition, and it will expose those that have not.

Loan growth in July increased to 11.8 percent while deposits including bill of exchange grew by 1.9 percent. Liquidity in the system remains adequate, with loan/deposit ratio excluding interbank transactions at 90.1 percent in July. On asset quality, gross NPL ratio edged downward to 6.4 percent in June. These numbers show that the performance of the Thai banking sector is quite robust, and is well positioned to support the economy. Fourth, a more difficult picture to assess is the impact of the turmoil on the economy and how this would translate into the impact on the banking sector. So far, notwithstanding the less helpful global environment, the Thai economy has performed relatively well, with growth averaging 5.7 percent in the first half of this year. But going forward, market participants expect the economy to become more affected by the slowing global economy. Our own forecast also sees growth to be less buoyant in the second half of the year, reflecting a more adverse impact on exports. But overall, the momentum of growth should not be too adversely affected given the support that growth could gain from domestic demand which is being supported by high farm income, continued credit availability, and supportive fiscal policy. Moreover, lower oil prices and monetary policy that focuses on inflation should provide a stable price environment conducive to domestic demand and to export competitiveness. Also, continued current account surpluses, lower external indebtedness, and high domestic savings have made the economy’s financial conditions more stable, by reducing its dependency on capital flows.