IPSs have to obtain the same improvements in organisation, efficiency, economies of scope, diversification and quality and unity of management as traditional mergers. They must do so in the same length of time as a normal merger, and they must strive to ensure that their results are clearly perceived by the markets as lasting. 2  BIS Review 173/2010  In this connection, it is vital that the initiators should be particularly diligent in countering the danger that the “raw novelty” of this legal formula – whose features have had to be rapidly devised – may be used as an excuse for rigidities, procrastination or half-measures. Compared with traditional mergers, where the combining of objectives and efforts to advance in a single direction is more natural, all the participants in IPSs must be on their guard to prevent the essential goal of unity from becoming distorted. They must strive to ensure that the mind-set of directors, managers and staff alike is geared towards a single goal; individual visions are no longer appropriate here, and nor are decisions not aimed at achieving a better future for the single corporate project that has replaced its predecessors. All the participants in institutional protection schemes are assuming a very specific responsibility here, an institutional responsibility and a personal responsibility.
More recently, Brexit brought to the forefront the concerns over the health of the European economy, leaving the rest of the world with less hope of a broadbased economic recovery. Furthermore, 6 central banks have implemented the negative interest rate policy resulting in irregular financial market structure1. An extraordinary amount of the world’s sovereign debts carry negative yields. Meanwhile, major currencies have been volatile. Relative to the USD, the Japanese Yen appreciated by 18%, whereas the British Pound dropped 1/5  BIS Central Banker's Speeches  by 12% year to date. As for a small open economy like Thailand, domestic financial markets inevitably felt the ripple effects of the developments and growing anxiety at the global level. Once again, risk appetite has turned towards emerging markets – and Thailand is no exception. While last year, we saw a net portfolio outflow of around 7.6 billion USD, the first 7 months of this year already recorded a net inflow of over 5 billion USD into bond and equity markets combined. 10year bond yield hit a record low at 1.54%, while the Stock Exchange of Thailand index has marked about 20% gain to date, compared with a 14% fall just one year earlier. Despite volatile asset price movements, the Thai financial system remains resilient thanks to our sound external position and sound financial system. As in the past, foreign participation in the Thai bond market remains at less than 10 percent, while that in the stock market is around 30 percent of the market capitalization.