Against this background, we at the Bank of Thailand see the global recovery continuing firmly in the short term despite the higher oil prices. This year, Thailand’s export market - as measured by GDP growth of our major trading partners - is expected to grow by about 5 percent. This growth will be the key factor supporting our exports this year. At the same time, Thailand’s exports to China continues to expand, though at a lower rate compared to last year’s. Hence, the effect of the slowing Chinese economy on our exports is a factor that should be monitored closely. For the first half of this year, I am happy to report that Thailand’s exports to Australia grew by 16.6 percent while imports from Australia grew by 38 percent. Australia is now Thailand’s 11th and 12th largest trading partner on exports and imports, respectively, claiming a share of 2.3 percent of Thailand’s total trade. And with the recent conclusion of the bilateral free trade agreement between our two countries, trade between our two economies is likely to grow and grow. As for the global financial markets, let me just say briefly that this year global financial markets have been dominated by the changing expectations about the pace and the timing of monetary policy tightening in the US. And this has led to a global repricing of financial assets and some reversal of international capital fows, especially away from emerging markets.
Basel II principles require all banks to address all risks, such as credit risks, market risks, operational risks and others. The principles envisage that banks should have in place systems that would help identify, measure, monitor and make provisions for such risks. The domestic banks are aware of the importance that the application of the new standard should coincide with concentration on risk management in keeping with the best global practices by using the best technological solutions. Reviewing the topics of this Symposium and the quality of its speakers, I see that it broadly covers aspects and all types of applications of banking risk management as Basel II principles seek to highlight and address. In conclusion, I express my deep thanks to the audience and the organizers of this symposium, and we look forward to having positive contributions and outstanding papers, wishing you all success. Al Salumu Alaikum Warahmatu Allahi Wabarakatuh. IS Review 125/2006  1