The recent global financial crisis serves as a reminder that status quo is never good enough. Financial development is therefore a journey that should never end, with milestones along the way. BIS central bankers’ speeches  1  As we move on to the next stage of our journey, it bodes well with a saying that “Yesterday was a walk in the park. But tomorrow is a step in the dark.” While I would not exactly call our past events a walk in the park, there are approaching challenges that depict dark clouds above our path. The contextual trends and challenges that I am going to highlight tonight derive from technological developments, the ageing society, urbanization, and regionalization. Firstly, with technological developments, traditional barriers to entry were brought down, allowing non-banks such as fintech companies and cross-border players to the market, and helped reduce operating costs. At the same time, consumers expect better and more timely services. Banking is something that customers want to do “anytime and anywhere”, and they want to do it cheaply as well. While technology may help us reach our destination faster, it also dictates that we be more adaptive and responsive to changes. Banks that get stuck in the past will lose out quickly. A second challenge that put banks’ adaptability to the test is the shifting demographic structure of Thai population.
12  Anders Åslund: The Group of 20 must be stopped, Financial Times November 27, 2009. 13  Article IV, Section 3 (a) of the IMF Articles of Agreement. 6  BIS Review 22/2010  I would emphasize certain key principles:   First, systemically important countries need to collaborate effectively on consistent economic policies. Their success is vital not only for their own good, but also for that of others, including small open economies.   Second, this collaboration should be anchored in a multilateral and statutorybased system of representation, for example through constituencies, where smaller countries would participate, even if indirectly.   Third, the constituencies should have rotating representation, where small countries, at least periodically, could participate directly. Without such a global order, the interest in contributing to international efforts is certain to diminish. There can be no taxation without representation. Thank you. BIS Review 22/2010  7