These developments not only reflect the critical role that the financial sector plays in the economy, but also reinforces the need to forcefully resolve existing structural weaknesses in the banking sector if Thailand is to fully attain its growth potential. In light of the evidence presented so far, this section attempts to highlight the challenges facing Thailand’s
financial system and draw some conclusions that may serve as a guide towards policy in meeting those challenges, both from a short-and long-run perspective. The ultimate goal, in this respect, is the development of a more balanced financial structure
which is both more resilient to shocks and more efficient in allocating capital.