6  BIS central bankers’ speeches  Incentives work in the opposite direction. Nearly all the bank supervisors I have known over the past three decades have invariably been drawn towards the parts of their InBox about individual firms, for the simple reason that that is where their individual accountability is starkest. At its heart, the FPC is a device to overcome this problem. It charges a group of policymakers to step aside from the fray, resisting myopia and synthesising the perspectives of supervision, securities regulation, market operations and macroeconomics, with the goal of identifying and addressing the big developments that could jeopardise stability. Lest it be doubted, that task will, of course, be unachievable without a suitable flow of information from the bank supervisors (and the securities regulators) to the FPC and its staff in the Bank. The FPC’s instruments will not be aimed at individual firms per se. But we are expecting that the Committee will be briefed by Hector Sants’ supervisory team on the circumstances of the most significant firms, and to be informed routinely about shifts in the supervisors’ ratings of firms generally. Symmetrically, the FPC’s concerns will surely help the efforts of the microsupervisors. In particular, the macro perspective can make a big contribution to the design of stress tests of firms’ soundness, whether “top down” stress tests conducted for the FPC itself or “bottom up” stress tests conducted as part of micro supervision. And the markets perspective can help to identify issues or types of firm that warrant closer examination.

To ensure that our financial system serves our economy and society well in the VUCA world, I believe that there are three imperatives we must focus on. These are (1) productivity, (2) immunity, and (3) inclusivity. Allow me to highlight some initiatives that have been implemented to advance these objectives in Thailand. First, on the productivity front, we are committed to supporting the use of technology for greater productivity. Digitization will help enhance efficiency in financial services. There has been remarkable progress in the electronic payment ecosystem. For instance, our PromptPay, which was launched early this year, is among the most efficient faster payment systems in the region. Last week, we launched the standardised QR code for payment services. This was the world-first collaboration from the five major global credit card service providers. These payment platforms and standards will improve convenience and efficiency, and provide foundation for innovative financial services. On building immunity to safeguard financial system resilience, Thai commercial banks constantly maintain high level of capital and loan loss reserves. In addition, we place much emphasis on proper market conduct, good governance, and most importantly, fortifying trust. The Banking Industry Code of Conduct has recently been revised to promote a culture of good governance and ensure fairness in the industry. This year, the Bank of Thailand 5 World Population Ageing Report 2015 (page 2)  http://www.un.org/en/development/desa/population/publications/pdf/ageing/WPA2015_Report.pdf  4  embarks on a new initiative to enhance banks’ understanding of risks associated to their behaviour and culture.