Thai banks can meet new requirements for financial report

[webfact]

Thai banks can meet new requirements for financial report  

By The Nation

 

Yuphin

 

 

The Bank of Thailand is confident that commercial banks and private financial institutions can comply with the upcoming accounting rules on financial report, known as Thai Financial Reporting Standard (TFRS9), said Yuphin Ruangrit, the central bank's director of financial institutions business and accounting policy office.

 

The TFRS9 will take effect in January next year.

 

The central bank currently require banks to keep a reserve against incurred loss, but under the new financial reporting standard, banks and other financial institutions will be required to provide loan reserve against expected loss. The TFRS9 is based on the concept of forward-looking information. 

 

The 2008 subprime mortgage crisis in the US had resulted in many financial institutions going bust and the International Accounting Standard (IASB) had to develop new accouting rules, in a bid to prevent the crisis from happening again. The new rules of IFRS9 were adopted in 2013.

 

The Bank of Thailand has worked with the Federation of Accounting Professions and private auditors in adopting the IFRS9 in Thailand. The central bank is confident of banks' compliance after conducting a parallel run on loan reserve calculation, Yuphin said.

 

Thai banks, on average, have high loan reserve at 110 per cent to 150 per cent of doubtful debts. 

 

An impact on banks is that their net interest rate margin may be wider as they could count expected interest income promised by bad-debt borrowers.

The new accounting rules will be applied to state-owned banks in 2025, she added.

 

Source: https://www.nationthailand.com/business/30377049

 

-- © Copyright The Nation Thailand 2019-10-04

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[nobodysfriend]

Got ripped off by a lot of banks in Europe , ( Life insurance not paying interest after 1 year , credit card cancelled when in Thailand ( unusual traffic the said ...) and so on .

Worst was HSBC ( Horrible Selfish Bankster Corp ) , but here in Thailand 20 yrs with SCB, never one problem .

[RichardColeman]

5 hours ago, webfact said:

banks and other financial institutions will be required to provide loan reserve against expected loss

so, 800k to one million then

[robertson468]

3 hours ago, nobodysfriend said:

Got ripped off by a lot of banks in Europe , ( Life insurance not paying interest after 1 year , credit card cancelled when in Thailand ( unusual traffic the said ...) and so on .

Worst was HSBC ( Horrible Selfish Bankster Corp ) , but here in Thailand 20 yrs with SCB, never one problem .

Have to totally disagree.  The worst is by far Barclays.  I sent them a letter to cancel one of two account, stop a standing order and to send quite a large sum to my Thai Bank as payment for a construction.  At first they said they had not received my letter, but fortunately I sent it via Thai Post by "sign for".  Contacted them and they advised me of the date it had been delivered, where and who had actually signed for the letter.  They then said, well you asked us to do three actions, we had done the first two and (over a month later) were getting round to actioning the third (transfer of money).  I would have thought they could have scanned it in to their IT System and then sent the letter to the respective Departments.  I complained to the Ombudsman who ordered them to pay me compensation.  A rather sad nom-de-plum and interesting motto of the Order of the Garter!

[Scot123]

1 hour ago, robertson468 said:

Have to totally disagree.  The worst is by far Barclays.  I sent them a letter to cancel one of two account, stop a standing order and to send quite a large sum to my Thai Bank as payment for a construction.  At first they said they had not received my letter, but fortunately I sent it via Thai Post by "sign for".  Contacted them and they advised me of the date it had been delivered, where and who had actually signed for the letter.  They then said, well you asked us to do three actions, we had done the first two and (over a month later) were getting round to actioning the third (transfer of money).  I would have thought they could have scanned it in to their IT System and then sent the letter to the respective Departments.  I complained to the Ombudsman who ordered them to pay me compensation.  A rather sad nom-de-plum and interesting motto of the Order of the Garter!

First question: why are you not using barklays app? I do everything using it. Transferring money from accounts, paying bills, opening ISA etc and setting up DD. In fact banking wise UK is decades in advance of Thai Banks. I just moved back to the UK after almost 9 years living in Thailand and having had a Bangkok Bank account for about 17 years. My experience was one of total incompetence. In my experience I've been told how to defraud the bank to get a mortgage by the bank, told I needed XY & z to get a mortgage only after doing it told sorry no rules changed (3 months had passed) told if I wanted a credit card I had to give the back the money first then they would lend it back to me @ interest of course. Actual banking knowledge was shocking. I hated going to the bank and my wife dreaded it. Nope its decades behind the UK. However I did like TISCO bank in Thailand as got all my car loans and big bike loans through them. Could walk in and walk out with a loan for a car or motorbike so credit to them but their system was archaic. 

[DrTuner]

Uh-oh. Changing the accounting system will bring some worms to the surface for sure. A pandora's box waiting to happen. But I'm sure 'creative' accountants will find a way.