Once the system is up and running, supervisory coordination in terms of exchange of information, say  BIS Review 102/2001  1  on risk model validation, will also be crucial. For this reason, seminars such as this also serve to build useful networks. Ladies and Gentlemen, Let me turn now towards the second topic at hand, the issues surrounding new technological development, that is, E-Banking. Indeed the key driver of the financial landscape in the past decade has been technology. Innovations, both in finance and IT, have changed the boundaries of financial institutions' businesses, spurred vertical as well as horizontal integration in financial industry and related industries, increasing the numbers of mergers and acquisitions, and in turn, revolutionized the regulatory boundary conceptually and geographically. In short, the definition of what is a financial institution is being challenged. Advancements in technology have ramifications for real applications in many Thai businesses, and the banking industry is no exception. Changes in consumer lifestyle are amongst major factors pushing financial institutions to implement technology-based services that will deliver traditional transactions in a more timely and convenient manner. Such a trend is evidenced by the fact that many Thai banks have invested a significant amount of resources modifying their technology systems to support new on-line services and to enhance efficiency and cost-effectiveness of their operations.
Tanya Sirivedhin: The New Capital Accord and E-Banking Opening remarks by Mrs Tanya Sirivedhin, Deputy Governor of the Bank of Thailand, at the FSI Workshop for SEANZA's Forum for Banking Supervisors, Chiang Mai, Thailand, 3-7 December 2001. *  *  *  Distinguished Resource Persons and Participants, Ladies and Gentlemen: I would like to take this opportunity to personally extend a warm welcome to everyone here today, and to express our deepest appreciation to our distinguished speakers and panelists who have kindly agreed to share with us their knowledge and experience concerning the New Capital Accord and EBanking. I would also like to thank the Financial Stability Institute of the Bank for International Settlements, for their efforts in co-hosting this workshop on frontier issues. As is well known, the New Capital Accord is scheduled for implementation in 2005. Reflecting comments on the second consultative package, the draft third consultative package is scheduled for release early next year. Judging from the comments submitted in May, the new draft promises to be interesting and controversial. This is not surprising since it will mark what will be no less than the beginning of a worldwide revolution in the way financial institutions are managed, and especially how risks are supervised. The sophistication that comes with enhanced risk-sensitive capital charge should be an important incentive to drive financial institutions around the world to upgrade their expertise, organizational structure, database, IT system, and most of all their risk management process.