Our dependence on private capital inflows to finance our current account deficit has increased. Moreover, we have to factor in uncertainties in the global financial markets. These developments call for vigorous domestic policy reforms with a greater emphasis on trade competitiveness and energy security so as to enhance the pull factor for FDI to reinforce our BoP.
For that reason, we intend to have overlapping comment periods for the NPRs of both proposed Basel II and the proposed Basel I amendments, so that banks and others can review and comment on both NPRs at approximately the same time.