Normal operations resume, as the worst has passed
Thailand's financial system has returned to normal, after some disruptions from the floods, the Bank of Thailand's governor said today.
The central bank's "business continuity plan (BCP)" will end this week as financial institutions can resume normal operations, said Prasarn Trairatvorakul, BOT governor. The BCP involves close and rapid communications through regular video conferences between the central bank and top executives of commercial banks in Thailand.
Participants at the 12th video conference yesterday concluded that the risks that affected the country's financial system had reduced substantially, he said. Siam Commercial Bank's headquarter, which was surrounded by the floodwaters weeks ago, fully resumed its operations.
Siam Commercial Bank since Nov 21 has resumed normal operations at headoffice on Ratchadapisek Road, after floods forced it to exercise the disaster back-up plan and operate on a multi-centered basis on November 7.
"The well developed and tested multi-centred operations have allowed the bank to continue providing full services without any disruption. With the situation at Ratchayothin intersection and nearby areas gradually improving and returning to normal, the bank has resumed operations at the Ratchayothin Head Office as of November 21, as planned. The relocation went smoothly and the bank can provide services continuously," said SCB President Kannikar Chalitaporn.
She also assured the bank's assistance to affected customers. "With the cooperation of all parties in society, the bank is confident that our country will be able to overcome the crisis and regain its strength,"she added.
Financial institutions' acute problem now rests on growing debt problems.
Prasarn said that total outstanding debts of enterprises and individuals in 30 flood-hit provinces amounted to about Bt400 billion. "Some could turn into non-performing loans but not all," he said.
Now, most flooded-affected companies concentrated more on recovering plants and restoring machinery than assessment of damage, he said. With that, the manufacturing sector may be restored by the end of this year, instead of expectation for the first quarter of next year.
