The increasing cross-border trade and investment call for broadening cross-border players. As a result, the Bank of Thailand, together with other central banks in the region are working towards establishing a cross-border banking network through the so-called Qualified ASEAN Bank or QAB framework, which will facilitate qualified banks in ASEAN to increase their presence in another country. The expansion of banking presence through this framework will help increase coverage and service efficiency that are needed for economic integration. The Bank of Thailand is in the process of negotiating bilateral QAB frameworks with Myanmar, Indonesia, Malaysia and the Philippines. Turning to the capital market, Thailand is also playing a proactive role to connect capital markets in the GMS by allowing foreign entities – government and private – to raise funds in Thailand. Last year, the Lao PDR launched 11-billion-baht issue (or about $ million) of baht-denominated bonds, which were well-received by the investors. In addition, Thailand has allowed firms from the GMS to be listed on the Thai Stock Exchange with a view to providing global investors with a wider coverage of investment products. Therefore, this will offer firms from the GMS with wider coverage of fund raising. *** On the choice of financial services: In June 2014, the World Bank’s Global Findex estimates that over three-quarters of adults in CLMV countries still do not have access to financial services5. There is room for improvement and we are fortunate to live in an era where technological advancement can do wonders to mankind.

Since 1992, the PPP-adjusted GDP of the GMS has expanded almost seven-fold from $ billion to around $ trillion, making it, in aggregate, the eighth largest economy in the world, or the size of the British economy.1 Intra-regional trade also increased 90-fold since its inception.2 Intra-regional investment growth has also been impressive. More specifically, last year, the GMS agreed to further prioritize over 100 infrastructure investments and technical assistance projects worth over $ billion for the next 3 years, including the Laem Chabang-BangkokDawei corridor in Myanmar and Thailand, and the Vientiane-Boten railway project in Laos.3 These remarkable developments are the results of continued efforts, both from within and outside the region, on strengthening physical, trade, and investment connectivity. While GMS’s growth prospects are promising, the strength of the GMS will depend on its ability to remain competitive. Despite the GMS’s young population, growing middle class, increased urbanization, and rich natural resources, we cannot only rest on our endowments and past achievements. Rather, we have to find new ways to unlock the potential of the GMS. While physical infrastructure connectivity has seen much progress, I believe that financial integration is needed to complement infrastructure, trade, and investment connectivity. This leads me to my second topic. *** 2. How can we harness these opportunities through greater financial connectivity? Let me introduce three potential benefits of financial connectivity: (1) lower costs, (2) broader coverage, and (3) modern choices. On Costs: Costs of cross-border financial transactions are still relatively high in the GMS.