Thus, to keep things manageable, one needs to be selective. Specific standards and codes included in the FSAP therefore differ from country to country depending on their relevance and significance to its financial system. In the case of Thailand, I suppose the scope of the FSAP would likely include most, if not all, of the following core modules: •  Banking supervision  •  Securities market regulation  •  Insurance sector regulation  •  Payment system  •  Monetary and financial policy transparency, and  •  Anti-money laundering and combating the financing of terrorism. In order to attest to the efficacy of each of these regulatory mandates, the FSAP assessment process also involves face-to-face interviews and discussions with a number of private sector institutions. BIS Review 61/2004  1  The third aspect of the FSAP involves identification of follow-up measures for the authorities to address any gaps in the country’s regulatory framework; which also provides a foundation for future technical assistance programmes, if necessary. In the course of today’s workshop, our experts from the IMF will no doubt enlighten us on what the FSAP process would entail in practice. So please feel free to ask any question you may have, especially those who have already embarked on the self-assessment exercise for the relevant modules.
Some differences in our practice as compared to international standards may not warrant any further action at all, for they reflect our conscious intention to adopt rules that best suit our own unique situation as well as rules that should be phased in gradually to comply with international standards only at an appropriate time. We welcome the opportunity to discuss and share this understanding with the FSAP assessors, who are drawn not only from IMF and World Bank staff but also from other countries’ central bankers, regulators, and international experts. Before I let you get on with the workshop, I would like to conclude by saying that, with or without the FSAP, the Bank of Thailand will continue to strive for a safe and sound financial system, both through efforts to restructure financial institutions under the Financial Sector Master Plan, and through continued strengthening of prudential standards and supervisory practice. Risk-based supervision approach has been adopted. Loan classification and provisioning requirements have been and will be tightened further. Good corporate governance has been enforced, including appropriate composition of the Board of Directors and, most recently, fit and proper criteria for the top management of commercial banks. We have come a long way since the 1997 crisis and we do not intend to look back. Yet, many formidable challenges lie ahead. On the international front, a lot of preparations and adjustments are needed in response to the introduction of IAS39 and the new Basel Capital Accord.