Bandid Nijathaworn: Regional financial supervision – challenges and the way forward for Asia Remarks by Mr Bandid Nijathaworn, Deputy Governor of the Bank of Thailand, at a conference on “Macroeconomic and financial stability in Asian emerging markets”, organised by the Central Bank of Malaysia and the Asian Development Bank Institute, Kuala Lumpur, 4 August 2010. *  *  *  First, let me thank Bank Negara Malaysia and the Asian Development Bank Institute for the invitation. It is a pleasure to be here. Since the first session this morning, we have covered many important issues facing Asian Emerging Markets, and I can not agree more that they are the important policy issues for Asia in the period ahead. In this concluding panel on coordination of regulatory practices, I want to make a few observations on the challenges and the way forward for Asia, focusing on cross-border financial regulation and supervision. A good way to begin is to note that the global financial crisis not only offers important lessons for monetary policy and financial regulation, it also points to the need to further strengthen policy coordination on cross-border financial supervision and resolution amongst regulators in the region, as well as between home and host regulators, in order for us to be able to react better to the risk and the global-wide impact of a systemic financial distress.
BIS Review 47/2001  5  There is substantial uncertainty associated with developments in Japan. Industrial output and exports have declined. The financial sector is struggling in the face of large losses and poor performance, and the general price level is falling. In the euro area the picture is mixed. Growth is solid in countries like France, Finland and Ireland. Germany has a large internationally exposed industrial sector, which is feeling the effects of the 1 slowdown in growth in the US and Asia. In a survey , growth forecasts for Germany have been revised downwards this year from 3 per cent a few months ago to a good 2 per cent. Economic growth prospects for Sweden and the UK are also weaker than a few months ago. However, the easing of monetary and fiscal policy in many countries should contribute to a pick-up in growth and reduce the risk of a pronounced international downturn. The Norwegian economy will be particularly hard hit by an international downturn if this translates into a sharp fall in oil prices and other commodity prices that are important for Norwegian exports. This would lead to lower export revenues and slower growth. Employment would also be affected. An international downturn would also lead to lower prices for imported goods and services and thereby reduce domestic inflation. If other Nordic countries are negatively affected, this will have an impact on the supply of labour in Norway since the Nordic labour market has become increasingly integrated.