deals with monetary policy in the modern era, and asks the big questions. in view of the changes in the global and domestic economies, and in view of the changes that are likely to occur in the structure of money in the modern age, it is crucial to understand how monetary policy should be conducted and what is the toolbox required to do so. thus, already in the coming year we intend to carry out a process of rethinking the monetary policy framework, and we have already invited senior officials from central banks around the world to come to israel and participate in a conference we plan to hold on the issue. it is certainly 2 / 4 bis central bankers'speeches possible that at the end of the process we will reach the conclusion that the current regime is the correct one and there is no need to change it, but we must challenge that thinking from all sides before reaching that conclusion. another team is dealing with the financial system of the future, and how to prepare for the changes expected in it. the team is formulating a strategy, the goal of which is to maintain financial stability while aligning the financial and regulatory system to the changing environment, enhancing competition, and implementing innovation. the technological developments that are changing the financial system were at the core of the team ’ s work, as were the challenges deriving from the growth in the number of type of participants in the system, alongside questions raised regarding the role of the bank of israel as a main factor in the financial system and in the capital market overall. the third team is having a ball. it is focused on advanced technologies in the digital era. the team thought about the effects of the digital era on financial infrastructures — open banking, blockchain, digital currencies, and the need to update the payment systems in the economy to an immediate and fast payment system — an area in which israel lags behind the global frontier. they discussed the contribution of the fintech industry to the israeli economy, how innovation can be promoted in the financial system and in the economy overall, as well as how to change the bank itself into a digital and innovative organization. anyone who knows me knows that i live and breathe research and data. the fourth team that we established deals with that. i ’ m afraid that since i took office i have caused more than a few white hairs among the excellent people in the bank ’ s research department and the information and statistics department, with the requirements and requests i set for them. the statistical data

me to highlight a number of thailand ’ s fundamental strengths that underpin this positive outlook. first, our corporate sector remains competitive with accumulated robust savings and profitability. this fact is well evidenced by their healthy balance sheets and their ability to explore investment opportunities overseas. net profit of most listed companies in the second quarter 2012 turned out be positive despite damages inflicted by the floods. with strong financial positions and more trade liberalization, an increasing number of firms have gone overseas, as indicated by a marked increase in thai direct investment from $ 3 billion in 2007 to $. 10. 6 billion in 2011. second, supportive fiscal and monetary policy has helped enhance growth while continuously strengthened stability in the thai economy. this achievement has been attributable to responsive fiscal and monetary policy, together with market - friendly regulations aimed at keeping the economy operating close to its potential. the rapid recovery from the great floods last year amid global economic uncertainty has revealed the importance of fiscal stimulus and government efforts in restoring public confidence. at the bis central bankers ’ speeches same time, the expansionary monetary policy stance has helped accommodate business restoration process. third, thailand has a strategically well placed - location for international investors to benefit from rising asian integration. the rise of china and the asean economic community ( aec ) evidently provide enormous opportunities for businesses operating in thailand to expand and prosper from enlarging market size and integrated regional supply chain. automotive and electronics industries are prominent examples that have long gained competitiveness after establishing complex supply chain - hub in thailand and obtaining a critical foothold in the region. finally, the thai financial system has been resilient to the global financial crisis. and the key reason for the banking sector ’ s resiliency is that our financial system remains relatively non - complex. the financial transactions are derived from real economic activities, and hence risks are understandable and manageable, with lending to domestic companies accounting for 70 percent of loan portfolio and the rest is mainly mortgage loan. the direct exposure of thai banks to european countries is also very small. investments and loans made by thai banks to europe are only 0. 3 percent of total assets, while claims on thai banks by european countries are even smaller at 0. 03 percent of total liabilities. nevertheless, we will be watchful of the second round impact of the eu crisis, particularly via impact on exports that could impact asset quality. apart from the existing solid fundamentals outlined above, thailand is currently striving to develop a more efficient financial system to