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
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.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.