BOT Revises Pillar 2 Capital Rules, Encourages Faster Adoption of THOR
The Bank of Thailand (BOT) published the revised Pillar 2 capital rules, along with the related questions and answers (Q&A), to help financial institutions manage risk and capital adequacy more flexibly. BOT is revising Pillar capital rules to enable financial institutions to face new types of risk, such as information technology, legal, and regulatory risks. BOT also highlighted that the rules are being revised to account for the environmental, social, and governance (ESG) factors in the risk assessment process. The revised Pillar 2 rules will come into effect on January 01, 2022.
In addition, BOT announced that the Thai financial market is now ready to use Thai Overnight Repurchase Rate (THOR) as a reference rate in financial contracts in all aspects. THOR has been developed to replace the Thai Baht Interest Rate Fixing (THBFIX) interest rate reference, which will be discontinued after June 30, 2023, along with the USD LIBOR interest rate. BOT encourages all market participants to familiarize themselves with and start using THOR as their benchmark reference rate. In another development, BOT added “TMB Bank Thanachart Public Company Limited” to the list of domestic systemically important banks (D-SIBs).
Related Links (in Thai)
- Press Release on Revised Pillar 2 Rules
- Notification on Revised Pillar 2 Rules
- Revised Pillar 2 Rules and Related Q&As (PDF)
- Press Release on THOR
- Notification on Updated List of D-SIBs
- Circular on Updates List of D-SIBs (PDF)
Effective Date: January 01, 2022
Keywords: Asia Pacific, Thailand, Banking, Securities, Pillar 2, Regulatory Capital, Basel, Interest Rate Benchmark, THOR, THBFIX, LIBOR, Benchmark Reforms, D-SIBs, Systemic Risk, BOT
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Blake Coules
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
Previous Article
APRA Finalizes Prudential Standard on Remuneration PracticesRelated Articles
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023