. we will, from the end of this year, require incremental provisioning for remaining amount of loan for npls outstanding for more than 2 years. by this new rule, if an npl still remains outstanding for more than 4 years, provisioning for the entire value of the loan must be set aside. by that time, banks ’ balance sheets will be very prudent. more important is the introduction of more prudent criteria to classify npls of banks. on top of the record of non - payment, the bank of thailand auditors have, since the beginning of 2003, looked at the “ ability to repay ” based on the potential cash flow as well. all these prudential measures are designed not only to strengthen the thai financial system, but also to increase its credibility. ladies and gentlemen, to sum up, the bank of thailand has taken several measures to ensure monetary and financial stability. the thai economy has proven to be resilient. this year, despite the many recent challenges, the economy has been able to adjust well to shocks, owing importantly to the strong underlying fundamentals und a continued growth momentum. going forward, as economic recovery continues, we need to be alert and be vigilant on the possible risks to economic stability, especially the risk on inflation. to this extent, our recent reorientation of monetary policy stance will serve towards ensuring the needed safeguard of economic stability, whilst not detracting from the underlying growth potential. and because in an economic cycle upturn, risk of imbalances building up in some sectors of the economy may emerge. even though there is no current sign of imbalances or bubbles, the bank of thailand will need to be alert and be vigilant in looking out for signs of imbalances to prevent economic instability at an early stage. at the same time, we have made significant progress in strengthening our financial institutions. this progress has now allowed us to move forward to the phase of upgrading the efficiency and continued adoption of evolving international standards, which in turn, will serve to enhance financial system competitiveness, stability, und credibility in the period ahead. thank you.

in economic activity. third, thailand ’ s human resources and know - how provides a solid foundation for businesses to flourish and expand. a strong human capital base constitutes one of thailand ’ s main comparative advantages. and this remains fully intact. finally, a key element of the nation ’ s fundamental strengths that i would like to underscore is thailand ’ s geographic advantage to benefit from the promising growth in asia. the rise of china and the asean economic community or aec provide enormous opportunities for businesses operating in thailand to expand and prosper as the regional markets and productions become more integrated. the complex supply network and infrastructure that have long been established in thailand, especially in the automotive and electronics industries, serves as a unique platform for international investors to obtain a critical foothold in the region. i believe that these existing solid fundamentals that i have just outlined will help thailand emerge strongly from the economic setback we recently experienced. however, in a constantly shifting global landscape, we policymakers cannot be complacent with the status quo. a lot remains to be done to guarantee the continued strength of our economy. the key impetus falls on structural reforms that lift thailand ’ s international competitiveness. this will not only enable thailand to reap the full benefits of the emerging trend of regional integration, but also ensure sustainable growth in the long run. considerable adjustment and transformation of our economy will be required. bottlenecks to businesses due to structural rigidities will need to be removed. factors of production will have to be upgraded and reallocated to activities that offer the most promising way forward. government policies and laws will have to be updated and changed to best facilitate such structural adjustments, all the while making sure that the burden of adjustment on those who stand to lose is bearable. as should be apparent, these challenges cannot possibly be completely met in the short - term and will require long - term commitment from both the public and private sectors. the bot ’ s role in meeting these challenges is, first and foremost, to deliver on our mandate of ensuring macroeconomic stability. a stable macroeconomic environment will not only foster business - friendly climate and make the process of structural adjustment easier, but it is also a key prerequisite for long - term sustainable growth. in this regard, i bis central bankers ’ speeches believe that our flexible inflation targeting framework will continue to serve us well. this conclusion is based not solely on thailand ’ s favorable experience with the framework, but also echoes the experiences of many other central