BOT Tackles Credit Issues, Discusses Proposed Rules on Digital Assets
The Bank of Thailand (BOT) made announcements on the aspects of problem loans, debt restructuring, and consultation on the use of digital assets. BOT announced the criteria to establish joint venture asset management company (AMC) to help financial institutions cope with the problem of non-performing assets that may gradually increase due to the COVID-19 pandemic; this development is relevant for commercial banks registered in the country as well as for the "Asset Management Company." BOT also set out guidelines on debt restructuring for businesses with multiple creditors, to support the business debtors of financial institutions and specialized financial institutions that have signed a Memorandum of Understanding with respect to debt restructuring.
Additionally, BOT, the Securities and Exchange Commission of Thailand (SEC), and the Ministry of Finance (MOF) jointly reviewed the benefits and risks of digital assets and deem it necessary to regulate the use of digital assets as a means of payment for goods and services. Therefore, SEC sought public comments, until February 08, 2022, on the proposed rules prohibiting digital asset businesses from providing services in a manner that facilitates or supports the use of digital assets as a means of payment for goods and services. The proposed rules will be applied to all types of digital asset businesses, with the aim to prevent extensive risks to the general public or the economic and financial system that could occur in the event that the use of digital assets as a means of payment for goods and services becomes widespread. BOT published questions and answers (Q&A) on the proposal on digital assets.
Related Links (in English and Thai)
- News on Criteria to Establish Joint AMC
- Notice on Nonperforming Assets
- Circular on Nonperforming Assets
- Notice on Guidelines on Debt Restructuring
- Guidelines on Debt Restructuring (PDF)
- Press Release on Use of Digital Assets
- Q&A on Digital Asset Guidelines
Keywords: Asia Pacific, Thailand, Banking, Securities, Digital Assets, Debt Restructuring, Covid 19, Credit Risk, Asset Management Companies, Basel, NPLS, 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.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
APRA Publishes Results of Climate Risk Self-Assessment Survey
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
ACPR Publishes Updates Related to CRD IV and Covered Bonds
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
EIOPA Publishes Guidance on Climate Change Scenarios in ORSA
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
EBA and ECB Respond to Proposals on Sustainability Disclosures
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
EBA Publishes Multiple Regulatory Updates for Regulated Entities
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
EESC Opines on Proposals on CRR and European Single Access Point
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury Publishes Multiple Regulatory Updates in July 2022
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.
