Finally, as a corollary of the above, micro- and macro-supervision should not be done in silo. In fact, we need to bring together the perspectives and tools from different stakeholders – central banks and financial supervisors, as well as government agencies that can contribute to financial stability. The property sector cooling measures introduced in Singapore and a number of Asian countries recently, involved close cross-agency cooperation and coordination amongst financial regulators, fiscal authorities and the land  BIS Review 121/2010  3  offices of the respective countries. Bringing together the various agencies expands the policy options to deal with systemic risks. Different countries have different institutional arrangements, so each country will need to decide on the optimal arrangements. Achieving regulatory outcomes through effective supervision and shared responsibility with industry 23. Let me now say a few words on achieving regulatory outcomes, beyond good rules. Perhaps the most striking area is the critical need for all of us to strengthen supervision. Effective supervision is unapologetically firm and intense, grounded on a good understanding of the nature of the institutions and the financial system. Supervisors must think independently, avoid regulatory capture and be willing to enforce out-of-bound markers rigorously. In this regard, I welcome the efforts of FSB and standard setters in developing recommendations for more effective supervision of complex and systemic institutions. 24. Effective supervision requires talented and trained staff, who can understand and respond constantly to new markets, new services, and new risks.

Prasarn Trairatvorakul: Journey towards a more competitive, inclusive, connected and sustainable Thai banking system Speech by Dr Prasarn Trairatvorakul, Governor of the Bank of Thailand, at the Association of International Banks (AIB) Dinner Talk, Bangkok, 21 May 2015. *  *  *  Ladies and gentlemen, It is a great pleasure for me to be here on this special occasion. The topics I addressed in previous occasions focused on economic situations and developments. So much has been said and discussed on those issues, so today I would like to talk about the future development of the banking system in Thailand which is equally important. As many of you here are already aware, we are drafting the third Financial Sector Master Plan which will cover the next five years time span. The process is quite challenging because it involves many stakeholders, both in the public and private sectors, including foreign banks like yourselves. We thank you for your suggestions and feedback provided individually and also as a group through the AIB. Today I will share with you briefly the concept and aspiration behind the development plan for the banking system in Thailand. Thailand is currently at a crossroad in need of structural reforms to cross over the middle income trap. This requires commitment from all stakeholders. The public sector is already taking the lead on infrastructure development to promote urbanization and more equitable income distribution. For the private sector, they will need to make a transition toward production with innovation and higher value-added.