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
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.