I believe that the development of transparent, comparable and simple securitisation structures, based on high quality standards of underlying assets, and with at least some market segments characterised by high liquidity, is a sine qua non condition for a return to self-sustaining securitisation markets. Indeed, investors need to be able to exercise the required due diligence and to assess the assets that are on offer, with the support of the credit rating agencies, which in turn should have the information and the analytical capacities required for this purpose. This, in turn, calls for a careful definition of the information that should be shared among market participants. The issue of liquidity is even more complex because of the cumulative nature of the conditions underpinning it. Enhanced secondary market liquidity will make the entrance of new investors more likely. A more liquid market may come as a result of better price disclosure, standardisation and less complex structures. However, without institutional investors, liquidity will not reappear. There is some circularity problem here since at the same time, it is more likely that institutional investors return to the market when market liquidity is proven to be there or strongly expected to be back. Finally, less sophisticated and specialised investors may also enter the market, but this would require an even more material increase in the simplicity, standardisation and transparency of securitisation markets. V.  The Eurosystem’s contribution to restoring the ABS markets  Let me dwell on the requirement of enhanced transparency of the underlying asset pools.

Prasarn Trairatvorakul: Thailand’s financial challenges in global capital markets Speech by Dr Prasarn Trairatvorakul, Governor of the Bank of Thailand, at the Thailand Focus 2012 “Positioning Thailand for the next growth phase”, Bangkok, 29 August 2012. *  *  *  It’s an honor to speak before you today at the Thailand Focus conference. This morning you heard Finance Minister Kittiratt Na Ranong speak on Thailand’s competitiveness and fiscal policy. Later on in the conference, other distinguished speakers will discuss Thailand’s investment opportunities in greater detail. To complement the picture, I will speak on monetary policy to complete your views on the investment opportunities and prospects of the Thai economy. As international investors, I believe you need to have a firm understanding of the country’s policy direction – something that is sorely needed in the current uncertain global economic environment. So today I will share with you my thinking on the monetary policy options going forward in light of my assessment of the global economy and the risks to the Thai economy. The organizer of this conference, President Charamporn, has kindly asked me to talk about “Financial Challenges in Global Capital Markets”. This is an especially relevant topic because, this year, the key challenge for Thailand is the challenge of weathering the financial and economic turmoil from the euro crisis. More than one year ago, I had the honor of giving a talk here. Some of you who were in attendance may recall that I labeled 2011 “the year of rebalancing” for monetary policy.