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Objective This research has the objective to recommend improvements for Thai financial institutions and the financial system for their further development and efficiency. The research team had proposed specific dimensions (sub-components of the financial system) for the framework of the research, described as follow. Scope of the Research Research was carried out for the identified specific dimensions of the financial system. The dimensions are separated issue-wise as follow. 1. Are there provisions of financial services which are varied and sophisticated enough compared to what are available in other financial system? Do people have access to the services? 2. Should a financial center of international level be promoted in the Thai financial system? 3. The supervision and regulation of financial institutions should be strengthened. How? 4. Savings are crucial resources for the financial industry. How may it be better mobilized? 5. The dynamism of the capital-market mechanism should be promoted. How may new products and uses of capital market be best promoted to boost productivity for this sector? 6. A mechanism for retaining regional capital in the region should be promoted. 7. Should new rules for managing capital movements be made for today’s changed systems. 8. Do uses of offshore financial markets by Thai institutions call for setting up one at home? 9. How can the public be informed of market opening commitments, under FTAs and WTO? 10. Should a financial safety net be considered as a cushion for future financial crisis? Methodology Research was done within the stated scope, using existing body of knowledge on the subject of financial institutions, financial system and the economy. Many theories and thinkings exist in the fields covering the subject. Practices elsewhere about financial services, products, management, etc., were studied through gathering of information, generally public, and most of which could be accessed through websites of financial institutions, academic institutions and international organizations. The existence of best practices in recognized systems was given some weight in evaluating and analyzing information. The economic background of a competitive, consumer-focused system relying on the choice of the financial services and markets used was a factor for making decisions too. Many references in print forms are made available on the internet, so the search for information was facilitated. Results The research findings can be summarized as follow. The Thai financial system offers varied and sufficiently sophisticated services, but access to the system is not available to a significant group of the population. Monetary policy conduct should be made more transparent. Action is needed to find reasonable interest rate credit for people in the regions and provinces. Competition is useful in the system. Supervision and regulation of financial institutions should be integrated. Bangkok should be promoted to be an international financial center. Regional banks should be established. International-banking-facility business should be promoted. Rules for management of capital movement should be reviewed and improved. Finally, Thai financial institutions should establish business in international financial centers. Recommendations. This research recommends the following measures, or guidelines, be taken for the reforms and development of the Thai financial system. 1. The system should be made inclusive. Every person should have access to financial services. 2. People left to obtain credit at high interest rate must be given better alternatives. 3. Interest-rate spread should not be greater than 2% in the formal financial system. 4. Financial innovation, as well as ‘financial engineering’ should be promoted. 5. Bangkok should be transformed into an international financial center. 6. Regional banks should be established to boost regional economic development. 7. The supervision and regulation of financial institutions should be integrated into one authority. 8. Improve the cooperation between home and host supervisors of foreign financial institutions. 9. Improve the adoption of accounting standards for commercial banking as ruled by IAS and FASB for the greater benefit of Thai institutions and consumers. 10. Promote strong competition in the system. 11. Involve people in the formulation and conduct of monetary policies. 12. Increase the efficiency of savings mobilization. 13. Prevent investment in excess of domestic savings by more than 3% of GDP in the macro economy. 14. Establish formal exchanges for trading securities and support operating over-the counter markets. 15. Take measures to increase market capitalization of stock exchanges in Thailand. 16. Promote proportion of registered securities not owned by owners and management. 17. Promote the issuance of municipal bonds. 18. Promote the issuance of state enterprises’ bonds in their own names. 19. Improve laws punishing use of security information to manipulate security prices. 20. Overhaul the body of laws on financial crimes. 21. Establish a world standard gold market. 22. Promote establishment of micro credit network that linked to use of gold as collateral. 23. Establish an offshore financial market to boost domestic financial capabilities. 24. Promote establishment of micro finance to retain and circulate liquidity in the locality. 25. Expand the savings cooperatives network to cover unserviced areas. 26. Promote people involvements by elevating Village Funds to bank status. 27. Promote establishment of services by Thai banks in international financial centers. 28. Promote state banks to do foreign businesses. 29. Publicize information of economic liberalization under Free Trade Agreements and WTO Agreements. 30. Improve the Alien Business Law to reflect global trend in HR movements. 31. Establish some financial safety net to prepare for future financial crises. 32. Publicize management of risks in financial institutions to promote general understanding. 33. Promote the establishment of international banking facility.