Bank Of Thailand Asked To Monitor Japanese Stockholdings In Thai Financial Institutes

[Jai Dee]

Bank of Thailand asked to monitor Japanese stockholdings in Thai financial institutes

The minister of commerce stated that the infiltration of Japanese stockholders in Thai banking institutions above the 25% margin was the Bank of Thailand's duty to mend.

Mr. Thanong Pitaya (ทนง พิทยะ), the minister of commerce, commented on the incident in which GE Capital of Japan have acquired a 25% stakeholding in Ayuddhya Bank, which exceeds the limit of foreign shareholding set by the Bank of Thailand.

Mr. Thanong has pressed the Bank of Thailand to evaluate the situation, and the BOT sees fit for Japanese shareholders to hold the amount, then the ministry of commerce will not intervene.

The minister of commerce stated that the important factor is maintaining foreign investment in the nation.

Mr. Thanong added that stabilizing the banking institution was of vital importance.

Source: Thai National News Bureau Public Relations Department - 18 May 2006