Regulation Of Thai Banks?

[Nip]

I am curious as to what are the Thai banking regulations with regards to the sanctioning of property loans .... I have been informed that if
somebody takes possession of a property illegally and then takes out a mortgage with a Thai bank that the bank has no obligation other than to
verify that the name the property is registered to is on the Chanote... That is the bank is not obligated to carry out due Diligence. And that should the property be returned to the the rightful owner that he or she is then liable for the debt incurred by the criminal third party. So effectively this is a legal manner in which to launder a stolen property... I am curious what due Diligence the bank required to carry out by law or regulation? Thank you in anticipation...

Edited April 2, 2013 by Nip

[soi41]

Very short. You don't get a mortgage without the chanote. So whoever informed you, was wrong!

[Nip]

Very short. You don't get a mortgage without the chanote. So whoever informed you, was wrong!

The question is ... Does the bank have any legal or regulatory obligation to verify that the Chanote was obtained in a legal manner that is to verify the purchase details before issuing a loan... That the manner in which the Chanote was obtained stacks up. For eg if a house valued at 30 million Baht was purchased for less than 3 million Baht.

[breadbin]

No they don't

Why are you asking?

It's a strange question to ask unless you're either up to no good or in the <deleted>?

So, which is it?

[Nip]

No they don't

Why are you asking?

It's a strange question to ask unless you're either up to no good or in the <deleted>?

So, which is it?

An even stranger answer?

The question ... "I am curious what due Diligence the bank is required to carry out by law or regulation?

Your answer; "No they don't."

Your implication "Your up to no good or either in the <deleted>?"

I just want to find out what due Diligence the bank is required to carry out by law or regulation? You clearly don't know...

[Thereisnoif]

If you think you can count on a Thai bank to support you, you are a fool , especially if the "criminal third party " is Thai .

[Nip]

If you think you can count on a Thai bank to support you, you are a fool , especially if the "criminal third party " is Thai .

Here we go again now I am a fool on the Fools Forum...

I just want to find out what due Diligence the bank is required to carry out by law or regulation?

You clearly don't know either ...

[Thereisnoif]

If you think you can count on a Thai bank to support you, you are a fool , especially if the "criminal third party " is Thai .

Here we go again now I am a fool on the Fools Forum...

I just want to find out what due Diligence the bank is required to carry out by law or regulation?

You clearly don't know either ...

Dummy there is no rule of law in this country . Open any newspaper and see it for yourself .

[Nip]

If you think you can count on a Thai bank to support you, you are a fool , especially if the "criminal third party " is Thai .

Here we go again now I am a fool on the Fools Forum...

I just want to find out what due Diligence the bank is required to carry out by law or regulation?

You clearly don't know either ...

Dummy there is no rule of law in this country . Open any newspaper and see it for yourself .

I'm a fool and a dummy but still my question remains unanswered by you "what due Diligence is the bank is required to carry out by law or regulation?" No need for insults! I asked a question you cant answer it and you call me a fool and a dummy...

[thaiwanderer]

your framing of the query is a little strange, do you really think the extent of a thai bank's consideration in offering and securing a mortgage is what they are legally required to do?

that aside, the bad faith mortgagee remains on the hook in your example as presented

[Maestro]

To the best of my knowledge there is no law or government regulation in Thailand requiring banks to carry out "due diligence" prior to granting any type of loan.

Sent from my Android tablet

[Nip]

your framing of the query is a little strange, do you really think the extent of a thai bank's consideration in offering and securing a mortgage is what they are legally required to do?

that aside, the bad faith mortgagee remains on the hook in your example as presented

If there are not set laws or regulations on the Thai banks lending policies I would imagine that the Bank of Thailand must at least issue guide lines that the lending institutions must follow? The banks being public companies are accountable to the Bank of Thailand and their shareholders. Even in MBK the stall holders clearly work within certain agreed guidelines... I agree with what every body says and thinks ie the Banks et all have their own agenda but there has to be stipulations whether or not they follow them is another matter.

[Nip]

To the best of my knowledge there is no law or government regulation in Thailand requiring banks to carry out "due diligence" prior to granting any type of loan.

This is what I am trying to establish ie if there are or not? As I said above ... If there are not set laws or regulations on the Thai banks lending policies I would imagine that the Bank of Thailand must at least issue guide lines that the lending institutions must follow? The banks being public companies are accountable to the Bank of Thailand and their shareholders. Even in MBK the stall holders clearly work within certain agreed guidelines...

I absolutely agree with what every body says and thinks ie the Banks et all have their own agenda but there has to be stipulations whether or not they follow them is another matter.

[chiangmaibruce]

Yes the BOT issues regulations that bind the actions of the banks, and the banks generally do act in accordance with them. But to what extent they address the issue of due diligence of potential lenders ... I couldn't say off the top of my head. I suspect that you would need to climb well up into the hierachy before you could rely on the answers you were given. Have you studied the BOT web site yet? It's a bit hard to find things in it, but there is a huge amount of info available there if you have the patience to probe. Also try google searches with terms like "Bank of Thailand lending regulations".

[thaiwanderer]

your framing of the query is a little strange, do you really think the extent of a thai bank's consideration in offering and securing a mortgage is what they are legally required to do?

that aside, the bad faith mortgagee remains on the hook in your example as presented

If there are not set laws or regulations on the Thai banks lending policies I would imagine that the Bank of Thailand must at least issue guide lines that the lending institutions must follow? The banks being public companies are accountable to the Bank of Thailand and their shareholders. Even in MBK the stall holders clearly work within certain agreed guidelines... I agree with what every body says and thinks ie the Banks et all have their own agenda but there has to be stipulations whether or not they follow them is another matter.

but the extent of their due dilligence affects only the issuance of the mortgage - it is irrelevant as to what later happens