Financial institutions serve as the intermediary that allocates resources from savers to investors across economic sectors. Due to the close linkage with domestic and external economic sectors, the BOT, therefore supervises financial institutions with the objectives to ensure the followings. (1) Financial institutions serve the need of real economy efficiently, (2) Financial institutions are competitive, and (3) Individual financial institution and the overall financial institution system remain sound and stable. In obtaining the 3 aforementioned objectives, the following 5 institutional frameworks have been drawn:
to ensure that financial institutions are prudent and have proper risk management system
to enhance overall efficiency of financial institutions
to ensure good corporate governance of financial institutions
to ensure fairness of financial institutions in doing business with their customers, and
to supervise financial institutions in order to safeguard economic and financial stabilities
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