BIS central bankers’ speeches  3  To get the real benefit from the advancement in ICT, we need to educate and persuade customers to change their behavior in using other payment instruments, from cash to non-cash instruments. In addition, the central bank needs to coordinate with financial institutions and service providers to make electronic payments to be more accessible, reliable and, of course, available at reasonable price. The third consideration is the implementation of principles for financial market infrastructures. From the regulatory point of view, the important payment and settlement systems need to be appropriately regulated. The recent financial crisis has shown that financial market infrastructures, such as payment and settlement systems and central counterparty, can be sources of financial shocks or major channels that shocks are transmitted across domestic and international financial markets. To enhance safety and efficiency, the principles for financial market infrastructures have been prescribed by the Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) in April 2012 with objectives to limit systemic risk and foster transparency and financial stability. In response to the new international standard, the Bank of Thailand intends to adopt these principles to our systemically important payment and settlement system which is BAHTNET system. Moreover, we will coordinate with other regulators to ensure that all systemically important payment and settlement systems are adequately supervised.
Those charged with managing the major financial institutions need to continue to make the investments necessary to stay abreast of change and to get as close to the frontier as possible. This reality makes it even more important that we in the supervisory community continue to look for ways to address aspects of the existing supervisory regime that impose unnecessary costs and burdens or that pull resources and attention away from potential sources of risk to the financial system. Thank you. 4  BIS Review 54/2006