BOT’s ‘too big to fail’ comment on big banks triggers panic
The Bank of Thailand has come under criticism on the social media for publishing the names of the country’s five largest banks in the Royal Gazette.
The central bank’s intention was to underscore the importance to the economy of Bangkok Bank, Krung Thai, Kasikornbank, Siam Commercial Bank and Bank of Ayudhya.
As such, it said, they warrant the central bank’s special attention and regulations to ensure that they remain secure.
Many people, however, misinterpreted the published statement as suggesting the five banks were facing financial difficulty.
Luxmon Attapich, a senior economist in the Asian Development Bank’s Bangkok office, said the statement was not easily understood by the general public.
She said the five banks named are financially sound and people need not worry.
