However, these reasons for the rise of NBFIs at the same time cause concerns. Due to their
rapid growth NBFIs have reached a size where their failure may have severe negative external
effects on the overall economy, which calls for an appropriate regulation of these financial
institutions. Moreover, NBFIs compete with banks, so that there should be also from this angle a
level playing field with regards to regulatory burden. It seems obvious that this unequal treatment
should come to an end and, indeed, Thai authorities presently develop plans on how to regulate
NBFIs. A reasonable benchmark could be the regular framework for banks, including the capital
adequacy requirements, as NBFIs are financial intermediaries.