bandid nijathaworn : regional financial supervision – challenges and the way forward for asia remarks by mr bandid nijathaworn, deputy governor of the bank of thailand, at a conference on “ macroeconomic and financial stability in asian emerging markets ”, organised by the central bank of malaysia and the asian development bank institute, kuala lumpur, 4 august 2010. * * * first, let me thank bank negara malaysia and the asian development bank institute for the invitation. it is a pleasure to be here. since the first session this morning, we have covered many important issues facing asian emerging markets, and i can not agree more that they are the important policy issues for asia in the period ahead. in this concluding panel on coordination of regulatory practices, i want to make a few observations on the challenges and the way forward for asia, focusing on cross - border financial regulation and supervision. a good way to begin is to note that the global financial crisis not only offers important lessons for monetary policy and financial regulation, it also points to the need to further strengthen policy coordination on cross - border financial supervision and resolution amongst regulators in the region, as well as between home and host regulators, in order for us to be able to react better to the risk and the global - wide impact of a systemic financial distress. this issue, as we know, is a complex one, and implementing the new reform or the new standards proposed, whether for crisis prevention or crisis resolution, will pose an important challenge for the region. turning specifically to the issue of cross - border supervision, i think it is clear from the experience of the current crisis that a number of observations were important. first, systemically important financial institutions ( sifis ), which include internationally active banks, do have significant implications for global financial stability, not least for the asiapacific region. when in distress, their operations and the uncertainties that they propagate can significantly impact confidence, market liquidity, and the real economy through a credit crunch and the drying up of international trade financing as we have seen, while prolonged market anxiety about how the problem is going to be resolved can heighten volatility in global financial markets. second, over such period, as was seen in the current crisis, host regulators in emerging markets in asia had limited room and information to respond to the sifi ’ s distress. the dominant role in managing the crisis was played by the home regulators. what followed was a lack of balance in addressing

opening remarks veerathai santiprabhob, governor of the bank of thailand bangkok sustainable banking forum 2019 13 august 2019, bangkok, thailand distinguished guests, ladies and gentlemen, good morning and welcome to the bangkok sustainable banking forum 2019. this forum was first started last year to promote sustainability practices in the thai financial sector and to highlight the potential role of the financial sector in addressing common challenges facing the thai society, such as income inequality, environmental degradation, excessive household debt, and the persistent problem of corruption. certainly, addressing the challenges around environmental, social, and governance ( esg ) aspects are critical for the sustainability of the thai economy and to some may seem far beyond financial institutions ’ core mandates. nevertheless, as main intermediaries of financial resources, the financial sector can influence how these resources are allocated and, hence, can influence how the economy and society progress over the longrun. many people may view that the concept of sustainability for the financial sector generally encompasses financial institutions partaking in charity or corporate social responsibility projects. i am afraid that the concept is often misunderstood. the core concept of sustainability needs to be considered first in the context of the long - run sustainability of the financial business itself. when financial institutions focus mainly on short - term gains, neglecting the potential long - term effects or negative spillover of their activities, this can in fact increase 1 / 7 financial institutions ’ risks ; risks that can impair their credibility, public trust, and financial positions in the long - run. allow me to highlight three well - known incidents in particular. first, in 2016 the us consumer financial protection bureau fined wells fargo usd $ 185 million after uncovering that employees of the bank had created millions of fraudulent customers ’ bank and credit card accounts over a period of many years in order to achieve annual sales targets. driven by poor internal controls and short - term incentive compensation programs, employees signed up new accounts without customers ’ consent, moved funds from their existing accounts, and charged fees on accounts and services customers had not signed up for. according to a report by the bureau, “ more than 1. 5 million bank accounts were created, of which around 85, 000 accounts incurred usd $ 2 million in fees. 1 ” not surprisingly, public confidence in the bank plummeted. a survey of retail banking customers conducted in late 2016 suggested that 30 percent of customers were actively exploring alternative service providers2. second, between 2013 and 2015 many countries in our asean region were affected by haze pollution caused