Thai central bank reiterates banks are strong, able to handle virus impact

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Thai central bank reiterates banks are strong, able to handle virus impact

 

FILE PHOTO: Thailand's central bank is seen at the Bank of Thailand in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva/File Photo/File Photo

 

BANGKOK (Reuters) - Thai banks remain strong with high capital buffers and can handle the economic impact of the coronavirus outbreak, a deputy central bank governor said on Sunday.

 

The Thai banking system has high capital adequacy ratios at 19.2% while liquidity remains ample, Bank of Thailand Deputy Governor Ronadol Numnonda sid in a statement, responding to a report earlier from an economist claiming that Thai banks were facing problems.

 

"Stress test results showed every Thai commercial bank has high capital and a strong position to cope with a severe crisis," Ronadol said.

 

The central bank is working with lenders to restructure debt and ensure borrowers can service their obligations, to maintain the stability of Thailand's financial system, he said.

 

Bank of Thailand Governor Veerathai Santiprabhob said on Friday that Thailand's fiscal policy should play a greater role to help the economy recover from the impact of the pandemic, adding the central bank will focus on assisting with debt restructuring.

 

(Reporting by Orathai Sriring in Bangkok and Kanishka Singh in Bengaluru; Editing by Lincoln Feast.)

 

-- © Copyright Reuters 2020-08-24

 

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[american2]

Loss of income by a large portion of the population, loans not being serviced by same, and over extended tourist related business?   I sense a Thai version of Helecopter Ben (Helecopter Veerathai) might be coming for Christmas/New Year)

Edited August 24, 2020 by american2
misspelling

[hotchilli]

I've learnt when someone says don't worry everything's fine... it's time to be wary.

[RotBenz8888]

No domestic covid19 cases, and no prostitutes in Pattaya. 

[Enzian]

"...high capital adequacy ratios at 19.2%..."

Can anyone explain what this refers to, or means? The banks have capital, equity, stock market valuation if they're listed, yes. But 19.2% of what? Thanks.

[bert bloggs]

A house near us was reposesed by the bank about 6 years ago ,i reckon then it was worth 10/12 million although i think it would have been hard to sell at that price ,the bank want 29 million for it , do they count these repo properties as "money in the bank"?

[dpcjsr]

NOW I am worried. 

They tell us not to worry...always a bad sign. 

They tell us the banks are going to get more involved...always a bad sign. 

 

Now what?

[Bender Rodriguez]

2 hours ago, Enzian said:

"...high capital adequacy ratios at 19.2%..."

Can anyone explain what this refers to, or means? The banks have capital, equity, stock market valuation if they're listed, yes. But 19.2% of what? Thanks.

you deposit 1.000.000 in the bank

 

the bank can make loans to others, for 10 times that amount

 

so they can loan 10.000.000 at high interest

 

they only need to keep 10 percent legally in deposit = your money where you get little interest for

 

this is how they make big bucks

 

[Scot123]

5 hours ago, bert bloggs said:

A house near us was reposesed by the bank about 6 years ago ,i reckon then it was worth 10/12 million although i think it would have been hard to sell at that price ,the bank want 29 million for it , do they count these repo properties as "money in the bank"?

I think you might have a valid and interesting point. The price is inflated vastly so for what reason I would suggest it's to cook the books.