BOT: Gulf's KBANK Shareholding Below 10% Threshold

Thansettakij•Economy•1d ago

Reader Briefing

The Bank of Thailand has clarified to Gulf Energy Development that their shareholding in Kasikornbank (KBANK) does not exceed the 10% limit under its regulations, as the calculation method differs from the SEC's.

•The Bank of Thailand (BOT) has clarified its regulations regarding shareholding limits in financial institutions.
•Gulf Energy Development's shareholding in Kasikornbank (KBANK) is assessed to be below the 10% threshold based on BOT's calculation method.
•This distinction arises because the BOT counts all issued shares, while the SEC excludes treasury stock from its calculation.
•Exceeding 10% shareholding requires prior approval from the BOT to prevent business dominance.

Overview

•The Securities and Exchange Commission (SEC) excludes treasury stock (shares repurchased by KBank) from its shareholding calculation base.
•The Bank of Thailand's (BOT) regulations calculate shareholding from the total number of issued shares.
•The Bank of Thailand (BOT) stated that Gulf Energy Development's shareholding in KBank does not reach 10% under the BOT's criteria.
•Gulf Energy Development has previously reported its shareholding to the BOT since holding 5% of the total issued shares.
•The Financial Institution Business Act requires prior approval from the BOT for shareholdings exceeding 10% of all issued shares, in order to prevent a single entity from dominating a financial institution.
•The BOT's regulations permit exceeding 10% in specific circumstances, such as when it is necessary to increase the financial institution's stability or potential.
•Exceptions for exceeding 10% also apply in cases to maintain the stability of the overall financial institution system.
•Government agencies holding shares for general investment returns are also an exception to the 10% rule.

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Key Entities

Organization

Bank of Thailand (BOT)(ธปท.)ℹ️

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

Gulf Energy Development(กัลฟ์)

A company whose shareholding in KBANK is under review by the Bank of Thailand.

Kasikornbank (KBANK)(KBANK)ℹ️

A financial institution in which Gulf Energy Development's shareholding is being discussed.

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

The regulatory body whose shareholding calculation method differs from the Bank of Thailand's.

Kasikornbank(KBank)ℹ️

A financial institution that repurchases its own shares (Treasury Stock) which affects shareholding calculations.

Law

Financial Institution Business Act(พ.ร.บ. ธุรกิจสถาบันการเงิน)

A law that stipulates the requirement for prior approval from the Bank of Thailand when holding over 10% of shares in a financial institution.