Post by account_disabled on Dec 27, 2023 1:26:30 GMT -5
Mr. Pridi Daochai, President of the Thai Bankers Association, revealed that according to the Bank of Thailand Commercial banks are to prepare capital management plans for the next 1-3 years, taking into account future economic trends. and the potential of debtors to do business after the COVID-19 outbreak situation is resolved and while commercial banks prepare plans to manage this new capital level. The Bank of Thailand has asked commercial banks to refrain from paying interim dividends from operating results in 2020, including refraining from repurchasing shares. It is a measure to ensure that Commercial banks will maintain strong capital levels and support continuous business operations. In this regard, the above dividend payment will not be paid. It will be only temporary dividends. It is not an annual dividend payment that commercial banks can still reasonably consider paying. In addition, the guidelines of the Bank of Thailand as mentioned It is considered to be in line with the opinions and guidelines proposed by the International.
Monetary Fund (IMF) and the European Central Bank. and the Bank of England It is the view that commercial banks should give weight to strong capital accumulation to support risk events during the current global crisis (Pandemic) as well as to be able to perform their main duties in providing credit to businesses and households. and deal with the burden of setting aside provisions for non-performing debt that will increase. By refraining from other activities that affect the capital, such as paying dividends. or buying back shares Telegram Number Data Even the commercial banking systems in both the European Union and the United Kingdom There will be a ratio of capital funds to risky assets in 2020 as high as 18.4 percent and over 20 percent, respectively. In addition, the IMF views that such options will have a positive impact on shareholders and investors through returns. increased opportunity When the economic and financial situation returns to normal. For Thailand at present Thai commercial banking system It has a strong capital level. As of the end of April 2020, there was a total capital fund of 2,616,162 million baht, representing a ratio of capital to risky assets of 18.9 percent,
which is considered stronger than the minimum capital requirements of BoT at 11.0 percent (minimum capital level at 8.5 percent and Conservation Buffer at 2.5 percent) and higher than the international standard of the Basel Committee on Banking Supervision (BCBS) at 10.5 percent, while commercial banks also plan To manage the fund as a regular basis In addition, the Thai commercial banking system still has a high level of liquidity. which is sufficient for normal business operations Including supporting the repayment of deposits to the public. as well as bonds for investors The Thai commercial banking system has liquid assets close to cash, such as Bank of Thailand bonds and government bonds, amounting to 4.38 trillion baht, which is sufficient to support short-term withdrawal and use demand from both the public and private sectors (Liquidity Coverage Ratio: LCR) is also 1.8 times higher than the minimum criteria of the Bank of Thailand. “With the capital position and liquidity of the commercial banking system being strong at world standards. This gives confidence that the Thai commercial banking system can still play an important role in expanding credit. Help customers who encounter problems in every group. and manage the problem of non-performing debt. At the same time, various measures The Bank of Thailand has come out to help debtors. It will help alleviate various problems as well. Therefore, we would like to assure the public that we will get through this event together,” Mr. Pridi said.
Monetary Fund (IMF) and the European Central Bank. and the Bank of England It is the view that commercial banks should give weight to strong capital accumulation to support risk events during the current global crisis (Pandemic) as well as to be able to perform their main duties in providing credit to businesses and households. and deal with the burden of setting aside provisions for non-performing debt that will increase. By refraining from other activities that affect the capital, such as paying dividends. or buying back shares Telegram Number Data Even the commercial banking systems in both the European Union and the United Kingdom There will be a ratio of capital funds to risky assets in 2020 as high as 18.4 percent and over 20 percent, respectively. In addition, the IMF views that such options will have a positive impact on shareholders and investors through returns. increased opportunity When the economic and financial situation returns to normal. For Thailand at present Thai commercial banking system It has a strong capital level. As of the end of April 2020, there was a total capital fund of 2,616,162 million baht, representing a ratio of capital to risky assets of 18.9 percent,
which is considered stronger than the minimum capital requirements of BoT at 11.0 percent (minimum capital level at 8.5 percent and Conservation Buffer at 2.5 percent) and higher than the international standard of the Basel Committee on Banking Supervision (BCBS) at 10.5 percent, while commercial banks also plan To manage the fund as a regular basis In addition, the Thai commercial banking system still has a high level of liquidity. which is sufficient for normal business operations Including supporting the repayment of deposits to the public. as well as bonds for investors The Thai commercial banking system has liquid assets close to cash, such as Bank of Thailand bonds and government bonds, amounting to 4.38 trillion baht, which is sufficient to support short-term withdrawal and use demand from both the public and private sectors (Liquidity Coverage Ratio: LCR) is also 1.8 times higher than the minimum criteria of the Bank of Thailand. “With the capital position and liquidity of the commercial banking system being strong at world standards. This gives confidence that the Thai commercial banking system can still play an important role in expanding credit. Help customers who encounter problems in every group. and manage the problem of non-performing debt. At the same time, various measures The Bank of Thailand has come out to help debtors. It will help alleviate various problems as well. Therefore, we would like to assure the public that we will get through this event together,” Mr. Pridi said.