Authorities recognize that because financial institutions are in the process of
adapting their strategies and positioning to the new supervisory regime and
competition outlook, the initiation and details of Phase 2 policies must reflect
environmental realities in addition to empirical results and impact analysis of Phase 1
reforms.
Detailed research studies presented at the annual Bank of Thailand’s
Symposium in August 2005 highlighted several macroeconomic challenges that will
need to be addressed by all stakeholders especially those in the financial sector. These
include the decline in household savings levels and changes in the macroeconomic
structure and financial system infrastructure. The latter two are significant to the
financial sector since both require financial institutions to adapt and maintain strategic
vigilance to ensure smooth transition.