Today’s consensus is that payments, clearing, and settlement systems must be safe, reliable, efficient, and secure, which are critical to financial system stability. That’s why most regulators, the central banks in particular, have become owners and operators of clearing and settlement systems. Although the tendency is to outsource this function, many regulators at some stage or other have owned or operated these systems. 7. Another technology related risk is the desire of banks to acquire the leading edge with propriety systems, stand alone systems and specific IT systems. Banks tend to hang onto this short-lived approach. Individual systems are costly not only to banks themselves, but also to customers. The norms should be not attracting customers, but reducing their operational risks and reduction of transaction costs to customers. Both are often forgotten or ignored by banks and continuous reminding has become a regulatory responsibility. Despite moral suasion banks in many countries have not realized the gains of having common ATM platforms, back-up sites, disaster recovery sites and sharing of costs. 8. It may also be necessary to for banks to recognize that different risks matter in different lines of businesses. A comparison of business unit economic capital requirement by risk type indicates that operational risk is highest in fund management, private banking, and in retail banking when compared to corporate banking, insurance business (if banks are allowed to engage in). The new operational risk element is expected to hit banks specializing in areas - such as custodian arrangements and asset management.
Our efforts should not be just about coping with short-term fluctuations, but also about laying long-term foundation for Thailand’s future. That requires a forward-looking plan of  BIS central bankers’ speeches  3  action by all stakeholders. The Bank of Thailand, for our part, will continue to ensure a stable financial and economic environment, so that businesses can continue to thrive and individuals can enjoy better standards of living on a sustainable basis. Thank you and wish you all an enjoyable evening. 4  BIS central bankers’ speeches