As to be expected from a financial system that had undergone drastic economic
troughs, the studies revealed numerous inherent weaknesses and gaps in financial
services that needed to be addressed if Thailand is to prevent the reoccurrence of 1997,
and keep up with international financial trends. For example, financial institutions’
survey responses revealed that unclear rules and problems with interest rate
benchmarking tools were obstacles staunching capital market growth, while results of the
SWOT analysis showed how inadequate internal risk management practices and tools
left financial institutions unable to adequately measure, monitor and manage their
material risks.
The findings from these initial cross-country studies, surveys and SWOT analysis
were later used as background information for discussions by the Eminent Persons
Meeting,3
made up of financial experts from supervisory agencies, financial institutions,
large domestic conglomerate, and academia. Given the disparate nature of Thailand’s
financial system, coupled with the fact that this was only the first round of discussion,
much of the group’s proposals were fragmented. Nevertheless it was agreed that with the
right background information, a forum of experts could help crystallize the project’s
objective and vision.