Paper
Thailand: Commercial Banking Act
Regulation for banking institutions in Thailand
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17 pages
This paper is the 'Commercial Banking Act', as legislated by the Government of Thailand and revised in B.E 2505. It contains statutory provisions for carrying out of commercial banking services in Thailand.
The provisions of the Directive:
- Interpret the application of the Act and define the use of common terms;
- Prescribe the requirements for obtaining a license to operate banking business;
- Detail shareholding norms for various entities in a commercial bank;
- Specify regulations applicable to a foreign bank operating through a branch network or representative office;
- Lays down capital adequacy norms that are integral to carrying out commercial banking business;
- Impose certain restrictions on entities that are into this business;
- Stipulate discretionary powers vested with the Finance Minister in national interest with regard to the operations of commercial banks;
- List accounting standards, auditing and reporting norms that need to be followed.
The other sections of this paper relates with the following issues:
- Regulations against unsafe practices;
- Supervision and examination of banks;
- Winding up, amalgamation and transfer of assets of banks.
The paper concludes with clauses that briefly describe the exceptions, as and where applicable.
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