The reforms aimed at the treatment of systemic institutions may be grouped under two major headings: supervisory measures and new legal frameworks. 2  BIS central bankers’ speeches  Addressing firstly supervisory measures, solvency requirements for these systemic institutions have been tightened. Such tightening, on top of the levels set under Basel III, has been implemented in two phases. An initial step involved the Basel Committee establishing a methodology, based on five indicators, to identify these institutions. These indicators reflect the size of banks, their interrelatedness, the lack of substitutes for the services they provide, the global scope of their activity and their complexity. The following step was to impose capital surcharges, on a staggered scale from 1% to 2.5%. The second group of reforms refers to resolution, which involves an authority restructuring a bank through the use of specific tools, with the aim of ensuring the continuity of the bank’s critical functions and thus preserving financial stability. The essential characteristics all resolution regimes must meet were listed in the FSB document entitled “Key Attributes for Effective Resolution Regimes”. This has been one of the most important agreements reached to date on the matter. Resolution In the European sphere, the Bank Recovery and Resolution Directive have recently been approved, incorporating the FSB guidelines into the acquis communautaire. In Spain, Law 9/2012 of 14 November 2012 on the restructuring and resolution of credit institutions had already foreseen several of the elements required in this area by the FSB and by the Directive.
It is a shame that such an understanding of the intricacies of development and human satisfaction are not more widely understood and appreciated. As for Thailand, we may begin to foster this philosophy through adopting a more diverse array of measures of development and success. Agencies such as the NESDB should publicly announce and raise awareness of the diverse aspects of development, success, and prosperity. For example, these indicators can include rates of water accumulation for use and amount available in reservoirs each year, the number of villages that face water shortages each year, increase (or decrease) in forested areas, ratios of industrial factories with substandard water treatment procedures, oil dependency ratios of the industrial sector, or teacher-to-student ratios, to name a few. Our country’s leaders need to commit to certain goals and targets that are clearly and publicly announced. The public’s perception that growth and development is reflected only in growth of GDP should be corrected. Listening to me today, I am sure many of you may think that my visions are only a dream that will be hard pressed to find their way into reality. I do admit that many of these proposals will be difficult to put in place in practice, but they are not impossible. They are actions which we need to push towards, and  4  BIS Review 43/2006  at the soonest. I have discussed these issues in other venues and fora and with many positive reactions.