their retained earnings, the banking sector is still by far the largest source of funds for the corporate sector and is likely to remain so for many more years. thus, a dysfunctional banking sector can surely threaten to undermine the strength of the economic recovery. in the near term, non - performing loans ( npl ) as well as non - performing assets ( npa ) must be reduced more speedily, and indeed this has been one major focus of my work at the bank of thailand. of the remaining 773 billion baht of npl in the banking system at end - june 2003, over 400 billion are either in the court process or have completed the court process and in the legal execution process with assets awaiting to be liquidated. to speed up the process of asset sales and liquidation, we have proposed to the ministry of finance to carve out this portion of the npls from the banks by an independent body that would be assigned the task of asset sales and liquidation. this proposal could become effective by early next year and the approach would greatly assist a speedy resolution of npl problems. the remaining npl of approximately 350 billion baht would not be a difficult problem for banks to handle, given the current low interest rate environment, the ongoing economic recovery, and improving bank profitability. as for the longer term, it is important that the banking system diversifies its services and reaches out to meet the needs of the rural population currently considered under - serviced by the industry. this will ensure that financial constraints will not remain as an obstruction to a broad - based economic prosperity of thailand. the financial sector master plan, which has been drafted by the bank of thailand and is currently under the ministry of finance ’ s review, has looked closely at this important issue. and last but certainly not least, even when the thai economy can manage to sustain growth, we are not immune from new challenges and risks brought about by globalization. outstanding export performance, strong domestic fundamentals, and continued gdp growth will unavoidably attract foreign capital into the country and, as in the recent months, exert upward pressure on the currency. while the economy now enjoys a more flexible adjustment mechanism compared with the past, a huge influx of foreign capital relative to the size of domestic financial and capital markets can nevertheless cause substantial market volatility and, if persists, can even lead to the emergence of asset price bubbles. regarding the upward pressure on the baht, the bank of thailand has been monitoring the currency movements

curricular activities are selected. i am further informed that the candidates are of exemplary character and are committed to the betterment of their families, societies and the nation at large. ladies and gentlemen, i am also informed that this year, the foundation received several applications from a wide section of candidates. it is gratifying to know that many young men and women wish to have an opportunity to better their education in these trying times. it is for this reason that i call on all of us to assist, foundations like masomo, to increase the number of scholarships so that many more people could benefit from the scholarships. i therefore, urge the donors to the foundation to increase their allocation in the coming year and in future. i also call on other well wishers in this room and outside to support this noble cause. remember, an educated population is a pre - requisite to a country ’ s economic development. this year, the masomo scholarship is conferred on three exceptional and deserving young individuals in ms lenganji nalwamba who is studying electrical engineering, mr. wapatwa silungwe, studying civil engineering and mr. emmanuel mwila who is pursuing agricultural economics. in congratulating you on this deserved achievement, let me remind you that as you accept this scholarship, you have an obligation and duty to the masomo foundation and to the nation at large. it is this strong sense of obligation, duty, and commitments to serve the nation that enabled our fathers and fore fathers serve the nation wholeheartedly and brought us where we are today. as students with a masomo scholarship, each of you will be given a unique opportunity to prove yourself. i urge you to work hard and learn from others around you including those different from you and less endowed than you. let me also mention that as a masomo scholar, your progress and performance will be closely monitored and you will be looked upon as role models. i urge you to set the standards for others to emulate. i am confident that all three of you will live up to the highest standards and will not disappoint us. i once again congratulate you and your parents, for it is only through their guidance and care that you shall continue to succeed. i wish you well in your studies and hope to see the day when all of you will graduate with flying colors. lastly, let me commend the president of this foundation, for the noble work that you undertaking. i hope others