Internal preparedness is important in order to be able to consider requests for ELA, as the timeframe for reaction normally is very limited. It is important to note that preparation is crucial also if a central bank is to deny a request for ELA. If the central bank has no organisation for analysing systemic consequences and the availability of measures, it is very likely that it will not dare not to lend. 3  BIS Review 42/2000  No central bank wants to give financial institutions and markets the slightest reason to depend on central bank support rather than their own efforts to avoid financial meltdown. Clearly, ELA is a last resort measure that central banks use only when the stability of the financial system is at stake. A well-planned and clear LOLR function need not encourage moral hazard. On the contrary, a central bank with clear guidelines and a solid analysis capability is in the best position to pinpoint those situations in which ELA is necessary. In all other situations, clear guidelines help the central bank to stand firm against the institutions’ demands for help and to force markets to solve financial problems by themselves. BIS Review 42/2000  4
“The Thai Economy: The Current State and The Way Forward” Speech by Dr. Veerathai Santiprabhob Governor of the Bank of Thailand Japanese Chamber of Commerce (JCC) Thailand Dinner Talk 13 March 2017 Mr. Shingo Sato, President of the Japanese Chamber of Commerce, Members of the JCC Board, JCC members, Distinguished guests, ladies and gentlemen, A very good evening to you, First of all, I would like to thank the Japanese Chamber of Commerce for inviting me again to share with you my thoughts on the prospect of the Thai economy. Last year, I truly enjoyed the exchange of views, ideas, and information with all of you and certainly hoped many of you did so too. With more than 5,000 Japanese firms actively operating in Thailand across various industries, Japan is certainly one of Thailand’s most important business partners in both the real and the financial sectors. Indeed, as Thailand is trying to move towards more innovative and high value-added industries, it is encouraging to see Japan continuing to be at the top among countries that applied for privileges under the new BOI investment promotion scheme in 2016. This would not happen if Japanese professionals already on the ground like yourselves did not have strong confidence in the long-term prospect of the Thai economy. Ladies and gentlemen, My talk this evening will consist of two parts. In the former part, I will briefly discuss the current state of the Thai economy, paying special attention to its resilience and growth momentum.