in a systematic way. here it is important to stress that any one set of instruments working alone is unlikely to be sufficient. interest rate policy, macroprudential levers, and capital flow management measures all interact and their application should be viewed as a whole rather than in isolation. more broadly, the underlying institutional and legal frameworks that govern financial markets must be taken into account. these include financial product regulations, deposit guarantee systems, as well as the resolution framework for troubled financial institutions. a national financial stability framework that brings together and assesses the whole spectrum of financial regulation serves this important function. the second response to the more complex monetary trade - off is greater policy coordination. the underlying rationale for coordination is that in certain situations, the collective outcome of central banks acting individually according to their mandates may be inferior because cross - country spillovers are not internalized. the current aggressive monetary easing of advanced economies are a case in point. whether intended or simply a by - product, the outcome has the semblance of competitive devaluations. as a starting point, it is important that advanced economies acknowledge the potential spillovers of their policy. the federal reserve, in particular, wields outsized influence given the dominance of the us dollar in global trade and finance. emerging market countries need to coordinate in voicing their concerns and engage in dialogue. at a minimum, consultation minimizes surprises and the exchange of views helps to narrow differences in perceptions. but there is a more implicit form of coordination that i believe holds much potential. that is the coordination of monetary policy frameworks. this brings me to the third and perhaps most profound avenue for dealing with the new monetary policy trade - off. and that is the adoption of a monetary policy framework that systematically takes financial stability into account. successive boom - bust financial cycles have made it clear that unsustainable buildups of credit and leverage lies at the heart of financial fragility. it is hard to deny the critical role that monetary policy plays in this. monetary policy sets the price of leverage and hence has first order implications for the pricing of all financial assets and the evolution of the financial cycle. a framework in which monetary policy reacts systematically to the financial cycle, in addition to traditional inflation and output developments, will help to keep the economy on an even keel. this differs from an approach in which policy leans against the wind only when financial stability risks become evident. given the long and drawn - out nature of financial cycles, such an

towards alternative saving instruments such as saving bonds and government bonds. as for financing, the needs expected by individual customers are those for the purposes of working capital, residential, education and business expansion, while those of corporate customers remain financing for long - term investment for business expansion and short - term working capital requirements. other financial service needs expected by individual customers to be on the rise are the use of atm and life assurance, while more uses of phone banking and internet banking, provident fund management and cash management are expected by corporate customers. unattractive aspects of financial institutions that drive customers away from using their financial services although financial institutions, especially banks, are still the main financial service providers to consumers in thailand, there are some aspects of their services considered not so user - friendly, such as : • complicated procedures and long period of time for getting credit approved ; • inconvenient access to the services ; • inflexibility in the terms and conditions of repayment ; and • the emphasis of banks on collateral instead of repayment ability. 2. social aspects of retail banking sector as you can see, these findings show that there are some gaps of the underserved to be filled in the financial sector, and retail banking is an area of potential growth. moreover, we regulators believe that the consideration in retail banking sector extends above and beyond profit making for service providers and systemic stability because excess in this sector not only exacerbates a boom and bust cycle of credit, but also causes financial distress to over - leveraged consumers, triggering more social problems. therefore, with profit - making comes responsibility - banks should be responsible for consumer education programs as well, disclosing information such as interest charges and fees of financial services. let me go over quickly these points : in order to fulfill this inadequate access to financial services by under - served consumers, the bank of thailand initiated a pilot project on micro finance in collaboration with commercial banks. against misconception that micro finance is an unprofitable segment, this project aims to demonstrate that the coexistence of profitability and satisfied customers is possible with a right business model. late last year, we invited foreign speakers to share with senior management of thai commercial banks their experience in successful conduct of retail business in their countries. following this seminar, a number of banks already expressed their interests to participate in this pilot project. one social aspect that has clear benefits to all parties concerned is consumer education. it has two major dimensions, one on the