Going forward, we should be careful to ensure that new regulations, for instance aimed at separating the banking and trading arms of universal banks, do not have negative consequences for market-making activities that are not justified by significant risks. Likewise, we should be mindful about the fallouts of an ill-designed financial transaction law. Conclusion Let me draw to a close. The euro area banking sector is facing challenges on all sides: from new technologies, from new market players, from new rules of the game. Those challenges, insofar as they lead to competition and innovation, are healthy. They are how a well-functioning market economy works. But we must also recognise that, in the euro area, we need sound banks. A weak banking sector means a weak economy. So I entreat banks to respond to the challenges of the new environment and reinvigorate their business models. And I entreat policymakers to create a fair, clear and consistent level playing field where that can happen. Thank you for your attention. BIS central bankers’ speeches  5
At the same time, the introduction of the Inheritance Tax Act and the Land and Building Tax Bill will augment prudent spending by expanding the government’s ability in revenue collection. These laws will ensure a better tax structure to deal with future liabilities, promote greater fiscal balance as well as reduce wealth inequality. As for the Bank of Thailand, we play an important role in ensuring stability in the financial system. The experience of the Global Financial Crisis taught us an important lesson of a timely and efficient crisis management. In this regard, we have proposed an amendment to the Bank of Thailand Act to equip the Bank of Thailand with a broader set of resolution mechanism and enhanced safety nets in the financial system in time of systemic crisis. Ladies and gentlemen, my discussion today regarding recent and upcoming laws provides a snapshot of the legal framework to support our goal of sustainable growth. In the meantime, while one must accept that there will be many challenges ahead, particularly implementation issues, these new laws will at least set forth a necessary path for Thailand to move forward – a path I believe must be complemented by a firm policy direction. This leads to the last part of my talk, which I will focus on the Bank of Thailand’s policy direction and initiatives to support the country’s reform efforts. We are now at the onset of the third phase of the Financial Sector Master Plan (FSMP III), spanning over 2016 – 2020.