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Bank Shareholding Rules: Over 5% Needs Reporting Objectives & Plans

Bank Shareholding Rules: Over 5% Needs Reporting Objectives & Plans

Khaosod•Economy•2h ago

Reader Briefing

The Bank of Thailand (BOT) mandates that any entity holding over 5% of a bank's shares must report their intentions and strategic plans.

  • •The Bank of Thailand (BOT) has reiterated its regulations regarding bank shareholding.
  • •Holding more than 5% of a bank's shares requires reporting of shareholding objectives and plans.
  • •Strict measures are in place to prevent conflicts of interest and ensure robust governance.

Overview

  • •The Bank of Thailand (BOT) confirms existing regulations on bank shareholding.
  • •Holding bank shares exceeding 5% requires reporting shareholding objectives and plans to the BOT.
  • •This regulation is a proactive and strict supervisory measure by the BOT.
  • •Gulf Energy is reported to hold 9.96% of Kasikornbank shares and has already reported to the BOT.
  • •Strict oversight is implemented to prevent conflicts of interest and ensure robust governance, especially concerning loan approvals and financial transactions.
  • •Banks must not extend loans exceeding 5% of capital funds or 25% of total liabilities to major shareholders.
  • •The BOT will apply similar strict supervisory criteria to Virtual Banks as to traditional banks, despite different target customer groups.
  • •The BOT allows shareholding over 10% only in necessary cases for financial stability, institutional capacity enhancement, or systemic stability.

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Key Quotes

Nam Somchai
"If shareholding exceeds 5%, we have proactive and strict supervisory criteria with intensive monitoring processes as mentioned, and objectives for holding must be reported, which they have already reported."
หากมีการถือหุ้นเกิน 5% เรามีเกณฑ์การกำกับเชิงรุกและเข้มข้น โดยมีกระบวนการติดตามดูแลเข้มข้นตามที่กล่าวมา และต้องมีการแจ้งวัตถุประสงค์ในการถือหุ้น ซึ่งเขารายงานเรามาแล้ว

Key Entities

Organization

Bank of Thailand (BOT)(ธปท.)ℹ️
The central bank of Thailand responsible for monetary policy and financial regulation.
Gulf Energy(กัลฟ์)
An entity reported to be a major shareholder in Kasikornbank.
Kasikornbank(ธนาคารกสิกร)ℹ️
A major bank in Thailand, subject to BOT shareholding regulations.

Person

Mr. Somchai(นายสมชาย)
An individual quoted regarding the Bank of Thailand's shareholding regulations.