Bank of Thailand, Bangkok
Bank of Thailand, Bangkok, 273 Samsen Rd, Wat Sam Phraya, Phra Nakhon, Bangkok 10200, Bankook, Thailand

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Event Date Wed Feb 19 EST (almost 2 years ago)
Location Bank of Thailand, Bangkok
273 Samsen Rd, Wat Sam Phraya, Phra Nakhon, Bangkok 10200, Bankook, Thailand
Region All

FInancial Market Development 2020 - Financial market is a crucial component in the economic system. It is the engine that drives the economy, being a platform where surplus units meet deficit units and negotiate various kinds of financial agreement. The objective of financial market development is, therefore, to enhance the capability of the financial market to act efficiently as an intermediary. An efficient financial market is one with proper depth and breadth, that is on the supply side, there is a wide range of financial instruments, offering choices of issuers, credit risks, and etc. to satisfy all classes of asset demand. On the demand side, there has to be sizable investment demand from various types of investors, with different risk-return appetites. Also, a good diversity among issuers and investors usually brings about a good mix of market views, leading to an active exchange of financial assets. A highly liquid financial market as such is able to accommodate large and varied issuance of financial instruments with minimum price effect. Here, financial instruments can be quickly exchanged at reasonable cost. Efficient clearing and settlement system is a key supporting factor that helps lower transaction cost.

A liquid financial market also enables central bank to efficiently conduct its day-to-day operations to attain its interest rate target.

​Roles of BOT in Financial Market Development​
Progress in the development of the Thai financial market has continued in several aspects. A variety of task involve several entities in the public and private sectors; for instance, the Public Debt Management Office (PDMO), the Office of Securities and Exchange Commission (SEC), the Stock Exchange of Thailand (SET), the Thai Bond Market Association (ThaiBMA), the Bank of Thailand (BOT), as well as academics and market professionals.

Each entity has been tasked with the main responsibility of developing its specialized area. For BoT, money market (BIBOR and Private Repurchase Market) as well as Asian Bond Fund (ABF) are focused.

The Bank of Thailand (BOT) was first set up as the Thai National Banking Bureau. The Bank of Thailand Act was promulgated on 28 April 1942 vesting upon the Bank of Thailand the responsibility for all central banking functions. The Bank of Thailand started operations on 10 December 1942.

The Bank of Thailand Act, B.E.2485 was later amended in order to put emphasis on BOT's social responsibility, to create a mechanism to guard against economic crisis, as well as to set up BOT's decision making process to ensure good governance and transparency in the organization. Moreover, members of the public will be able to audit and increase the understanding of the BOT's operations. The Bank of Thailand Act, B.E.2551 came into force with effect from 4 March 2008.