are exploring the extent to which financial institutions'transition plans should be considered within the supervisory toolkit and overall prudential framework. while most financial institutions'transition plans have a climate focus, they have different nuances in objectives, ranging from climate risk mitigation to reducing financed emissions to supporting the real economy's transition to net - zero. but there are some common elements to all transition plans which are relevant to supervisors for assessing safety and soundness. the ngfs has completed a stock - take of supervisory frameworks with respect to financial institutions'transition plans. we are sharing the results of the stock - take with the basel committee on banking supervision and the financial stability board, to facilitate greater coordination in the development of transition planning standards. we will publish a report on key findings and next steps that will provide a basis for further work on the role of transition plans in greening the financial system. the next phase of the ngfs'work will develop guidance on transition planning to cater to different supervisors'mandates, toolkits, and prudential frameworks. recognising that there is a spectrum of supervisory mandates, such guidance will be based on a building block approach to aid financial regulators with varying approaches in their review of financial institutions'transition plans or planning process. scaling blended finance to move the needle on global emissions, we need to facilitate the decarbonisation of emerging markets and developing economies. emerging markets and developing economies account for more than half of global greenhouse gas emissions. they are still heavily dependent on fossil fuels for their economic development and energy needs. their energy needs are expected to grow significantly in the coming years alongside economic growth and development. it is not right to hold back their economic growth. rather, we need transition finance to help decouple growth from emissions – through cleaner energy, greater energy efficiency, more electrification, and production processes with a lower carbon footprint. but emerging economies and developing countries face several challenges in mobilising the transition financing necessary for decarbonisation. first, they have fiscal constraints. public debt remains the main source of funding for transition in these economies. but there are tight limits to how much debt these governments can sustainably raise, especially in foreign currencies. 3 / 5 bis - central bankers'speeches second, they have limited access to private capital. they lack depth in their domestic capital markets ; they lack large corporations, and a broad investor base. third, many of their transition projects are only marginally bankable

spotlight : developing a financial system for the future speech by dr. veerathai santiprabhob governor of the bank of thailand bloomberg asean business summit july 12, 2018, siam kempinski hotel, bangkok thailand distinguished guests, ladies and gentlemen, a very good morning to you all. it is my pleasure to be here today and take part in this event. first of all, i would like to thank bloomberg for organizing this exciting conference and for inviting me to share with you my thoughts on “ developing a financial system for the future. ” it is a timely and important topic as i am sure that most of us have been pondering how, in this age of disruptions, the financial system will develop to support economic growth while at the same time preserve financial stability. ladies and gentlemen, in this vuca world of high volatility, uncertainty, complexity, and ambiguity, thailand ’ s economy, like other emerging economies, is facing new challenges. monetary policy normalization in advanced economies, record - high debt levels in many parts of the world, stretched global asset valuation, and risks of an all - out trade war are posing immediate challenges to the stability of our financial systems. at the same time, technology disruption, aging society, and growing income inequality are also presenting structural challenges to many emerging economies, including thailand. against this backdrop, the bank of thailand has the duty not only to preserve and maintain economic and financial stability, but also to develop our financial system so that it can effectively unlock thailand ’ s economic potential, uplift productivity, and bring about more inclusive growth for the future. ladies and gentlemen, for the bank of thailand, maintaining economic and financial stability is a prerequisite for sustainable growth. thus far, the thai macroeconomic outlook remains favorable, with the economy expected to grow 4. 4 percent this year, the highest since 2012. additionally, 1 / 6 the thai economy has adequate buffers to withstand any immediate challenges, with ample international reserves, covering 3. 5 times our short - term external debts ; low dependency on external borrowing ; and current account surplus of around 8 – 9 percent of gdp1. moreover, our banking sector is robust, with high capital adequacy ratio and stable domestic funding. in the first quarter of 2018, the capital adequacy ratio of the banking system averaged 18 percent, among the highest in the region. to further safeguard financial stability, additional micro and macro - prudential measures were introduced, such as