5  BIS Review 111/2000  First, the huge outstanding debt owed by the corporate sector must be resolved, as cleanly and expeditiously as possible. Governments need to step in to push the process through, and in extremis to take over insolvent firms and do the clean-up themselves. Clear and enforceable bankruptcy laws are needed to deter prolonged default by debtors, and give creditors incentives to settle. And for the future, there must be more transparency in terms of corporate governance and reporting. For example, Thailand passed new bankruptcy and foreclosure laws last year, and I understand has just passed a new Accounting Act. Among other things, the new laws will stipulate minimum qualifications for auditors, and ensure that directors take greater responsibility for the accuracy of financial statements. Investors and analysts will view these steps positively, especially if foreclosure cases brought under the new laws and now before the courts are fairly and speedily settled. Second, many private sector firms, particularly family-owned companies, need to upgrade and modernise their management. Family businesses and conglomerates are a feature of many Asian economies. These were built up through the business acumen and drive of their founders, and still account for a sizeable component of the economies. But the world has changed. Capability and competence are now at a premium, and relationships count for less. Family companies need to segregate clearly ownership rights and management functions, and bring in other significant shareholders and external capital.
I urge you to be part of the conversation and engage in the dialogue. I pray that the event will be of great benefit to all participants. 3/3  BIS central bankers' speeches