BOT Guide on Reviewing Credit Transactions of Financial Institutions

BOT has published policy guidelines on the review of credit transactions of financial institutions. A financial institution can determine the amount and nature of credit to be reviewed in accordance with the nature and risk level of the credit portfolio according to the results of internal risk assessment. The guidelines detail best practices for credit review and stipulate that a credit review agency, which is the Second line of defense, must be independent from the operating entities in connection with credit transactions. The guidelines are relevant for commercial banks registered in Thailand, commercial banks registered in foreign countries, credit foncier companies, and finance companies. The policy guidelines shall come into force from January 01, 2021.