BOT Confirms Strict Bank Shareholding Rules: Over 5% Requires Reporting

Prachachat•Economy•5h ago

Reader Briefing

The Bank of Thailand (BOT) reiterates its strict regulations on bank shareholding, confirming that exceeding 5% ownership necessitates reporting of objectives and holding plans, alongside intensified monitoring.

•The Bank of Thailand (BOT) has clarified its regulations concerning bank shareholding, emphasizing proactive and stringent oversight for stakes exceeding 5%.
•Gulf's shareholding in Kasikornbank is confirmed to be below 10%, with the BOT's calculation method differing from the SEC's.
•The BOT has had regulations for shareholding exceeding 10% in place since 2008, and proactive monitoring for over 5% stakes is not new.

Overview

•The Bank of Thailand (BOT) has reinforced its existing regulations on bank shareholding.
•The BOT confirms that shareholding exceeding 5% requires reporting of holding objectives and plans.
•The BOT stated that shareholding exceeding 10% has been regulated since B.E. 2008 (2008).
•Gulf's shareholding in Kasikornbank is currently 9.96%, which is below the 10% threshold.
•The BOT's calculation for shareholding percentages differs from that of the Securities and Exchange Commission (SEC).
•Holding more than 5% of bank shares triggers mandatory reporting of shareholding objectives and plans to the BOT.
•These regulations are in place to prevent conflicts of interest and ensure robust corporate governance, especially since past financial crises stemmed from governance issues.
•Banks are prohibited from issuing loans exceeding 5% of capital funds or 25% of total liabilities for major shareholders, with all transactions requiring board approval to prevent preferential treatment.

Full article content is available on the original source.

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Source: Prachachat (Original)

Key Quotes

BOT Spokesperson

"If shareholding exceeds 5%, we have proactive and stringent supervision criteria with intensive monitoring processes and must be informed of holding objectives, which they have already reported to us."

หากมีการถือหุ้นเกิน 5% เรามีเกณฑ์การกำกับเชิงรุกและเข้มข้น โดยมีกระบวนการติดตามดูแลเข้มข้นตามที่กล่าวมา และต้องมีการแจ้งวัตถุประสงค์ในการถือหุ้น ซึ่งเขารายงานเรามาแล้ว

BOT Spokesperson

"The BOT's regulation on holding 10% of shares has been in effect since 2008 (2008), it is not a new matter."

เกณฑ์การกำกับของ ธปท.ถือหุ้น 10% มีการบังคับใช้มาตั้งแต่ปี 2008 ไม่ใช่เรื่องใหม่

Key Entities

Organization

Bank of Thailand (BOT)(ธปท.)ℹ️

The central bank of Thailand, responsible for financial institutions and monetary policy.

Gulf(กัลฟ์)

A company whose shareholding in Kasikornbank is currently under discussion regarding BOT regulations.

Kasikornbank(ธนาคารกสิกรไทย)ℹ️

A major bank in Thailand where Gulf's shareholding is being reviewed under BOT regulations.

Securities and Exchange Commission (SEC)(ก.ล.ต.)ℹ️

The regulatory body that oversees securities markets in Thailand, with a differing calculation method for shareholding from the BOT.

Law

Virtual Bank

A type of digital bank whose regulations are considered distinct but comparable to traditional bank oversight by the BOT.