BANKING

Basel III enforced in Thailand in 2013

The Nation

BANGKOK: -- The Bank of Thailand has issued 7 directives, to immediately apply the Basel III rules on the capital ratio of local and foreign banks operating in the Kingdom.

In the statement, the central bank said that Thai banks’ capital ratio is strong enough to comply with the Basel III immediately.

Starting from January 1, 2013, local and foreign banks in Thailand must maintain the capital adequacy ratio at at least 8.5 per cent of risk assets, which is unchanged from the current requirement. For Thai banks, tier-1 capital must be at least 6 per cent, including minimum 4.5 per cent of common equity.

The Bank for International Settlements (BIS), the central bank of central banks, drawn up the Basel III rules in light of the 2008 financial crisis.

"Though Thai banks are slightly impacted by the financial crisis and their activities are not exposed to the same risks as their peers in crisis-hit countries experienced, the Basel III capital adequacy rule is in line with the BOT’s main supervisory goals - strengthening Thai financial institutions’ capital and risk management system, as well as demonstrating Thai institutions’ compliance to international standards," the central bank said.

Thai banks’ capital adequacy ratio now stands at 16 per cent of risk-weighted assets. In the first three quarters of this year, their combined net profits were tuned at Bt135 billion.

Aside from tougher requirements on risk management which will affect the capital adequacy ratio, the Basel Committee on Banking Supervision (BCBS) also drew up tougher requirements on the leverage ratio. This will affect banks’ activities as well as liquidity-related risk management.

The Bank of Thailand said that it is studying the regulation and analysing the repurcussioins, before applying the regulation with financial institutions in Thailand.

-- The Nation 2012-12-14

Thai banks average 16% capital, while US and EU struggle to find 4% without damaging thier "Recoveries" so have delayed implementing it. Says a lot.

If you can't trust the Nirvana of Central Banking, namely the Bank of International Settlements then who can you trust? It like most Central Banks is a private institution owned and run by the banks and for the benefit of the banks. So how has billionaire bankers running the world worked out for the rest of us?

Fractional reserve banking, as long as it is in play the rich will get richer. The truly wealthy keep the middle-class focused on the next smart-phone, latest fashions, new car models and etc. insuring this group will remain ignorant of what was is going on and the rich will grow their wealth, while the poor remain poor, and the middle-class wallows in ignorance funding the whole scheme.

Henery Ford said it best years ago when fractional reserve banking and fiat currency became the norm in the States;

" It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."

Rather poorly written article from someone who doesn't seem to fully understand what they are writing about

Even the title and closing sentence seem to contradict: they've "Issued directives to immediately apply" but " are studying the "repurcussioins" before applying????"

Rather poorly written article from someone who doesn't seem to fully understand what they are writing about

Even the title and closing sentence seem to contradict: they've "Issued directives to immediately apply" but " are studying the "repurcussioins" before applying????"

learned people like you should not underestimate the "repurcussioins" Fletch. i have been told it is an extremely perfidious and dastardly disease which is transmitted by horny female cockroaches during full moon nights to male humans only.

once infected, the patient suffers from hallucinations and tries to increase his core capital by producing as many offsprings as possible with his mia noi, in severe cases with mia nois (plural).