Therefore, How to achieve full compliance with the Core Principles becomes another challenge for BOT supervision. The BOT, with the assistance of the IMF and the World Bank, has finished our self-assessment of our compliance with the Principles. Weaknesses in the existing system of supervision and regulation have been identified, and will form a basis for future remedial measures. The other two challenges involve the creation of internal expertise for IT supervision in order to be more responsive with technological evolution. The first is to enhance supervisors' technical know-how. The way to overcome this challenge is to provide regular training to supervisors. Some in-depth technological knowledge is necessary. The supervisors should be given tools to keep up with new technology, vulnerability, threats and other forces. Research and development for IT supervisors should be considered. Another challenge is to formulate policy with flexibility, forward-looking and reflecting changing business nature. One way to overcome this challenge is to broaden the view and knowledge of supervisors which can be accomplished by all aforementioned matters. 8  BIS Review 35/2005  6. Conclusion  In conclusion, technology is still changing and financial institutions tend to depend more on it. BOT has no intention to interfere with financial institutions' innovation; however, while technology is becoming more and more complex, so are the threats. A financial institution needs to have active IT management to provide secure and reliable services to customer. Supervisors need to keep updates with those new issues.

  With the widespread use of IT, it is important that the legal framework is in line with the new environment. Thailand has started to legislate five new Information and Communication Technology (ICT) Laws to embrace information technology since 1998. They are the Electronic Transactions Law, Computer Crime Law, Data Protection Law, Electronic Funds Transfer Law, and the National Information Infrastructure Law. The Cabinet has appointed the National Electronics and Computer Technology Center (NECTEC) to take charge of the drafting of these laws. The Electronic Transactions Law was promulgated on April 3, 2002 while the others arc in the process of enactment. BIS Review 35/2005  1  2. E- banking products in Thailand and supervisory concerns  What I would like to do next is to give you some examples of IT-related financial products and services currently offered in Thailand and the pertinent risk issues that bring up supervisory concerns. Let me start by briefly showing you our data on e-banking service usage by category. In the first four rows of the table, the figures show customers' e-banking transactions that have high transaction volumes but low average values. In the remaining rows, you will find that the Bank of Thailand is the sole service provider facilitating wholesale payment transactions between financial institutions and the central bank. Even the number of transaction is much smaller, the value is certainly much higher. This type of transaction of course has different risk implications from that with higher transaction volume in smaller amount of money.