BOT Issues Updates on Debt Restructuring and Dividend Payment Policy
BOT published guidelines for debt restructuring to assist business debtors affected by the COVID-19 pandemic. Financial institutions can consider delaying the repayment period based on the debt repayment ability of each debtor. Financial institutions can also consider maintaining the same classification during the deferral of debt repayment, depending on the status of the debtor before availing this measure (no later than December 31, 2021). Financial institutions must also not regard the delay in repayment as a cause for breach of the terms of repayment under the contract.
With respect to its dividend payment policy, BOT has allowed financial institutions to pay an interim dividend not exceeding the dividend payout ratio of last year and of no more than 50% of the first-half net profits of 2021. Financial institutions are still prohibited from buying back their shares and from redeeming or repurchasing financial instruments included in Tier 1 or Tier 2 capital before maturity. To determine the dividend payment policy for 2021, BOT will assess the pandemic situation and the economic recovery trends and will follow up on the progress of financial institutions' debt assistance.
Related Links (in Thai)
- Notification on Guidelines on Debt Restructuring
- Guidelines (PDF)
- Notification on Dividend Payment Policy
- Circular on Dividend Payment Policy (PDF)
Keywords: Asia Pacific, Thailand, Banking, COVID-19, Regulatory Capital, Debt Restructuring, Loan Repayment, Credit Risk, Basel, 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.

Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
OSFI Outlines Expectations on LIBOR TransitionRelated Articles
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023