1: NPL

1
Financial Transparency in Thailand by Mr.
Thirachai Phuvanat naranubala Deputy
Governor Bank of Thailand
BOT 1
2
Financial Sector RestructuringSince 1997
a) 70 finance companies closed down (21
remain) b) 3 commercial banks closed down (12
remain) c) 2 commercial banks taken over by
state, 4 by foreign banks d) Bht 900b (US 20b)
new capital increase e) BIS capital ratio now
13.3 f) Bht 700b (US 15.6 b) NPL transferred
to Thai Asset Management Company (TAMC) g)
NPL peak 46.8, now 10.5
BOT 2
3
Financial Sector Reform Since 1997
a) Tighten prudential standards / Core
principles b) Bank of Thailand Act c) Financial
Institutions Act d) Credit Bureau Act e) Risk
based supervision / International best
practices f) Legal reform / Bankruptcy Code
BOT 3
4
Monetary Transparency Thailands Financial
Health www.bot.or.th
a) Joined IMFs Special Data Dissemination
Standard (SDDS) in 1997 b) Quarterly
survey and release external debt since 1998
BOT 4
5
Monetary Transparency Thailands Monetary
Policy www.bot.or.th
a) FX regime changed to float b) Inflation
targeting framework adopted since May 2000 c)
Independent Monetary Policy Committee (MPC)
established d) Press briefing after each MPC
meeting (every six weeks) e) Quarterly issue of
Inflation Report adopted by 10 leading
countries and another 10 in ECB
BOT 5
6
State-owned Commercial Banks
a) 3 banks majority owned by state 27 of
banking assets b) 2 of which were taken over
because of 1997 crisis c) State does not direct
credit to any particular customers
BOT 6
7
Access by Foreign Banks
a) National Treatment given under WTO b)
Access has widened
1996 before crisis 2001 I) No. of
foreign bank branches 14
18 II) No. of local banks
majority owned by foreign banks
-0-
4 III) No. of local banks
15
12 IV) Share of banking assets of (I
II) 8.5 17.5
BOT 7
8
Access by Foreign BanksRanking by World
Competitiveness Yearbook 2001
Base on 1-10 scale (1 means very low and 10
means very high)
BOT 8
Source Survey sent to top and middle management
in 49 countries