State banks to come under BOT's rules of conduct

[webfact]

State banks to come under BOT's rules of conduct

By THE NATION

 

 

The Bank of Thailand (BOT) will expand the scope of market conduct rules to state banks and nano-finance business, said Jaturong Jantarangs, assistant governor for supervision group 1.

 

The rules currently apply only to private commercial private.

 

They were set to ensure that banks are sustainable under sound management for the benefits and protection of clients. 

 

State banks have already been informed that they will be subjected to the same criteria as their commercial counterparts. The BOT has been steering financial service providers to responsible and fair market practices under three main pillars: First, customers are assured that they will receive fair and sincere services; second, customers are given appropriate and clear advice; and third, customers are given products or services at reasonable prices and fair conditions.

 

Financial service providers must also help customers realise their rights and responsibilities. 

 

Chatchai Payuhanaveechai, president of the state-owned Government Savings Bank (GSB), said the market conduct rules would ensure that customers of state owned banks are treated fairly, adding that 

 

the bank has adopted these rules for more than a year. He expects they would be imposed on state banks next year. 

 

The rules would not affect GSB operations and sales as adjustment had already been made, he said.

 

Source: https://www.nationthailand.com/business/30377322

 

-- © Copyright The Nation Thailand 2019-10-15

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[Srikcir]

7 hours ago, webfact said:

The Bank of Thailand (BOT) will expand the scope of market conduct rules to state banks

Unless that means an end to Bank for Agriculture and Cooperatives, etc. government soft loans, those rules won't matter.

[hotchilli]

7 hours ago, webfact said:

The BOT has been steering financial service providers to responsible and fair market practices under three main pillars: First, customers are assured that they will receive fair and sincere services; second, customers are given appropriate and clear advice; and third, customers are given products or services at reasonable prices and fair conditions.

Will this mean employees will no longer help themselves to customer accounts.. or banks giving loans for home mortgages will no longer charge 100% plus interest rates?

[Cake Monster]

BOT trying to reign in these Banks to prevent even more stress on an Economy under pressure.

Book Loan value to Asset Ratio would be a good place to start IMO