4  BIS central bankers’ speeches  Third, they prompt work at bodies such as the Basel Committee for Banking Supervision, the International Organization of Securities Commission or the Committee on Payments and Settlement Systems, to establish the standards and infrastructures and create a level playing field, which are necessary for global markets to function in a smooth and safe way. In so doing, they foster risk-sharing through decentralised markets, avoiding the need to coordinate in the first place. Against the background of the possible “deglobalisation” forces that I mentioned earlier, and given the ongoing transition to a more multipolar currency system, this work may become even more crucial. To summarise, I am not convinced that the existing approach to monetary policy coordination should be fundamentally overhauled at the current juncture. Due to knowledge and legitimacy gaps, we should not believe that there can be a “global planner” which sets the rules or prescribes the monetary, prudential, fiscal and structural policies that each country shall pursue. However, countries can and should maintain the foundations for coordination to make global markets a safer place and allow for joint action in times of crises. The evolution of the IMS The IMS during the Bretton Woods era was strictly rules-based with fixed exchange rates and a gold standard. While appropriate in a world with capital controls and relatively modest trade flows, it proved to be too inflexible in the presence of large idiosyncratic shocks and growing internationalisation.

(2)  With the rapid development in technology, in the near future, apart from the known internet banking, we will see more of the "non-traditional" banking products. The providers of these services will not only be limited to banks, but also non-banks. Of course, the extent to which a non-bank provider can offer these new products and services depends on the rules and regulations of each country. To promote a fair competition between service providers that are banks and non-banks is a challenge for the authorities. BOT is in course of shifting from supervision by institutional basis to transactional basis which will enable us to overcome such a challenge. (3)  After the financial crisis, the need for strengthening supervision of financial institutions has been stressed as a major priority to BOT. The monitoring of financial institution systems becomes both more critical and more challenging for supervisors. The "Core Principles for Effective Banking Supervision" have become the most important global standard for prudential regulation and supervision. They are developed by the Basel Committee on Banking Supervision in cooperation with supervisors from noiQ-10 countries, providing the international financial community with a benchmark against which the effectiveness of bank supervisory regimes can be assessed. IT supervision is also included in the Core Principles such as CP9 (MIS), CP 11 (Information System to comply with Country Risk and Transfer Risk), CP13 (Contingency Plan, MIS, Business Resumption Plan) and CP21 (verification of information from bank records by on-site examination and/ or external audits).