risk-based supervision.in the past, a micro-oriented financial approach (or usual transaction testing) was adopted to monitor financial institutions.the approach has been broadened to be macro-oriented as well as forward looking.the involved risks are credit risk, market risk,foreign exchange risk, liquidity risk, and operational risk. the BOT will adopt basel ii by the end of 2008 consisting of the following three pillars (a)minimum capital requirements (b) supervisory review process and (c) market
discipline.