the technicality of approaches and methodology underlying the new accord. moreover, it is critical to achieve in - depth knowledge of risk management and the impact of such developments on business model of the financial institution. therefore the task ahead is very challenging, far beyond just acquiring software that would crank out numbers. on the infrastructure aspect, data is a critical issue. the data that could be collected at this time would be biased since the economic conditions are not normal. nevertheless, we still need to start building up the database. in many countries, such a challenge is tackled with the cooperation between the financial institutions and the regulators. for example, in a number of countries, developed countries in fact, regulators plays crucial coordination role in supporting the built - up of the database system, in educating and knowledge transfer. the bank of thailand will be more than happy to play this role. turning now to the second major challenge for the financial institutions, the intensified domestic and foreign competition brought about by liberalization, globalization and technology. banks also experience competition from non - bank financial institutions, with the traditional financial firms and their business line becoming blurred by conventional wisdom. we also see such strategy as m & a across similar financial firms, or between financial firms and non - financial firms such as it providers. in the meantime, outsourcing and franchising of technology, most notably through the venders for risk management software or solution have also exploded as a phenomenon. while the picture is still evolving so fast and future landscape hard to forecast, financial institutions find themselves stepping more and more into a less familiar territory, and tremendous efforts must be put in to survive the intense competition and dynamism. at the same time, attention must be diverted to deal with preparation for the new accord. the third major challenge is that financial institutions need to further strengthen their financial standing in the recovery path after the crisis. preparing for the new accord means cost impact from building capacity in terms of people, know - how, it, data, and business model re - engineering. therefore, strong leadership is crucial to propel the financial institution through the short - term difficulties, while at the same time steering the institution with long - term vision and strategy to ensure that the financial institution survives the challenge and complies with international best practices. as for the regulators, our task at the bank of thailand is no less challenging. in addition to the need to build up our own in - depth understanding and capacity to implement the new accord, we are also

better served by the bank of thailand empowered by the new financial institutions businesses act currently in legislative process. it is my belief that good corporate governance is key to safe and strong financial system because prudent and capable bank management that adheres to its professionalism overseen by independent and financial literate board of directors will be responsible to not only its shareholders but also depositors and consumers in all aspects of its business, including retail banking. in order to put such belief into a concrete form, the bank of thailand has announced guidelines supporting the practice of good corporate governance of banks ’ board and management. 5. conclusion the discussion thus far has covered various aspects of the question posed to me - what do regulators really want? - by now you will have already known my answers to this question. in essence, it is our hope that industry participants will make their best effort to do their job as well as we do ours to meet the challenges set out in the financial sector master plan : • providing financial services for all potential users indiscriminately to those in urban and rural areas, whereby viable users with simple needs and those with more sophisticated needs have access to financial products and services commensurate to their depth of financial literacy and risk appetite at reasonable price. • developing a competitive, efficient, stable, and balanced financial system • fostering fairness and protection for customers whereby financial institutions follow good corporate governance principles and consumers receive adequate information and advice from various financial institutions to make informed investment decisions. thank you.