[6] See, e.g., Brand, C., Ferrante, L., and Hubert, A. (2019), “From Cash- to Securities-Driven Euro Area Repo Markets: The Role of Financial Stress and Safe Asset Scarcity”, ECB Working Paper No. 2232. [7] Regulatory changes have also led to a higher demand for collateral assets. The implications of the increasing role of collateral in financial markets for financial stability and monetary policy are reviewed in Corradin, S., Heider, F. and Hoerova, M. (2017), “On Collateral: Implications for Financial Stability and Monetary Policy”, ECB Discussion Paper No. 2107. [8] For a discussion of the role played by the CCPs in counterparty risk insurance and collateral saving, see, e.g., Biais, B., Heider, F. and Hoerova, M. (2012), “Clearing, Counterparty Risk and Aggregate Risk”, IMF Economic Review, 60(2), pp. 193-222. [9] Excess liquidity refers to central bank liquidity provision in excess of bank minimum reserve requirements and autonomous factors. [10] Eisenschmidt, J., Ma, Y. and Zhang, A. L. (2020), “Monetary Policy Transmission in Segmented Markets”, Working Paper. [11] Duffie, D. and Krishnamurthy, A. (2016), “Passthrough Efficiency in the Fed’s New Monetary Policy Setting”, in Designing Resilient Monetary Policy Frameworks for the Future, Federal Reserve Bank of Kansas City, Jackson Hole Symposium. The index compares deviations of each of the short-term (overnight) money market rates from Chart 2 to the volume-weighted mean rate, and creates a volume-weighted index of these deviations. The index for the euro area shown in Chart 4 is from Corradin et al. (2020), op. cit.

As we already know, the payment and settlement systems are the backbone of the modern economy. In this regard, the Bank of Thailand has laid down financial market infrastructure to facilitate business operations. This year the Imaged Cheque Clearing and Archive System (ICAS) coverage will be expanded across the country to speed up the provincial cheque collection and clearing. This will help promote a more efficient payment system, enabling fast, safe, and secure financial transactions. The Bank of Thailand also encourages the use of electronic payment by coordinating with relevant parties to build infrastructure to facilitate this process. Concluding remarks Ladies and gentlemen, Despite many roles that the Bank of Thailand plays in ensuring economic and financial stability, I would like to say that the Bank of Thailand’s policy alone cannot ensure sustainable economic growth. Given Thailand’s structural shortcomings, there is the need to improve Thailand’s infrastructure and productivity, by improving technology and innovation. The well-being workforce and quality of education and training are also crucial to increasing competitiveness. For this, long-term coherent vision and concerted efforts among all stakeholders, both public and private, are needed. Let me close by leaving you with some final thoughts. Thailand is now challenged by both external and internal risks. These are not necessary unfavorable, as they also come with opportunities to urge us to prepare ourselves collectively to cope with uncertainty in the global economy. In an increasingly volatile world, we must do more.