Speaking from Thailand's own experiences and limitations, we realize that both planned and unforeseen challenges will mark our path towards eventual compliance. As such, we have taken some initial steps to check the readiness of financial institutions to conform to the credit risk guidelines under the New Capital Accord. A full impact analysis will be conducted next year. Going some way to prepare for the more sophisticated methodology embodied in the New Capital Accord's treatment of credit and operational risk, we are requiring, as a first step in the same spirit, that financial institutions calculate market risk capital charge in 2002. Actual capital requirement will be made, tentatively, in 2003. Although the complexity of credit risk and internal rating approach will add new difficulties even after market risk is mastered, we believe this step will serve to focus the attention of top management of financial institutions and supervisors, ensuring they will stay alert to other complexities that follow. In this connection, we would like to take this opportunity to thank Mr. Roland Raskopf and Mr. Jason George, who last October were kind enough to give Thailand's banking community excellent, and much appreciated, presentations on market risk, after which we received many calls from awakened private bankers for advice on how to plan the adoption in their banks. I should also like to take this opportunity to express our appreciation to Mr. George, who spent three years at the Bank of Thailand as consultant to help us build up our supervisory capacity.
Once the system is up and running, supervisory coordination in terms of exchange of information, say  BIS Review 102/2001  1  on risk model validation, will also be crucial. For this reason, seminars such as this also serve to build useful networks. Ladies and Gentlemen, Let me turn now towards the second topic at hand, the issues surrounding new technological development, that is, E-Banking. Indeed the key driver of the financial landscape in the past decade has been technology. Innovations, both in finance and IT, have changed the boundaries of financial institutions' businesses, spurred vertical as well as horizontal integration in financial industry and related industries, increasing the numbers of mergers and acquisitions, and in turn, revolutionized the regulatory boundary conceptually and geographically. In short, the definition of what is a financial institution is being challenged. Advancements in technology have ramifications for real applications in many Thai businesses, and the banking industry is no exception. Changes in consumer lifestyle are amongst major factors pushing financial institutions to implement technology-based services that will deliver traditional transactions in a more timely and convenient manner. Such a trend is evidenced by the fact that many Thai banks have invested a significant amount of resources modifying their technology systems to support new on-line services and to enhance efficiency and cost-effectiveness of their operations.