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
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.
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).
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.
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).
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.
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.
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.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
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 published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.