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
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