HoonSmart.com>>BOT makes TTB a critical bank in the domestic system (D-SIBs). The result of the merger makes it big There are more transactions linked to other financial institutions. as well as providing significant financial services in high volume and large number of customers.
Ms. Suwannee Jesadasak Senior Director The Bank of Thailand (BOT) said that the Bank of Thailand has designated Thanachart Military Bank (TTB) as a commercial bank that is important to the domestic system (D-SIBs) or D-SIBs. Another one this year as a result of the merger of TMB Bank (TMB) and Thanachart Bank (TBANK) make TTB bigger. and meet the criteria with more transactions linked to other financial institutions as well as providing important financial services such as loans, deposits, money transfers, payments in large quantities and with a large number of customers making it important to the country’s overall financial and economic system
Previously, there were 5 commercial banks that met the criteria, namely Bangkok Bank (BBL), Krung Thai Bank (KTB), Bank of Ayudhya (BAY), Kasikorn Bank (KBANK), and Siam Commercial Bank (SCB).
The BOT has issued criteria for assessing and supervising D-SIBs since 2017. The Bank has continuously assessed the status of D-SIBs every year.
For the designation of commercial banks as D-SIBs, the objective is to focus on preventive supervision. In order to prevent the financial institution system from having problems with stability, those banks are subject to more intense and close supervision than other banks, by having to maintain capital funds at a higher rate. and must comply with other regulatory measures that are more than general banks, including:
• Minimum capital maintenance is 1% higher than other commercial banks, with D-SIBs maintaining capital per risky assets by 1% to 12% (compared to 11% for non-D banks). -SIBs)
• Determining Bank D-SIBs to submit reports for the BOT’s supervision more frequently and faster, such as reports on supervision of financial business groups to be sent to the BOT on a monthly basis within 45 days. from the end of the month Submitting the Bank’s internal risk management report to the BOT as soon as requested
• Organizing a meeting between the Board of Directors of the Bank and the BOT to report on the results of important audits, whereby the BOT will inspect the D-SIBs every year, while other banks In the audit is at risk.
“Announcing more banks that are D-SIBs now. There weren’t some bad signs. Regarding the economic situation or the Covid-19 situation, but after the merger, TTB Bank has grown in size to meet the criteria of the Bank of Thailand. because there are more transactions linked to other financial institutions as well as providing important financial services such as loans, deposits, money transfers, payments in high volumes and a large number of customers,” said Ms. Suwannee.
