Bank surcharges to be finalised in 1-2 wks: Kittiratt
Deputy Prime Minister and Finance Minister Kittiratt NaRanong expects to finalise the new surcharges on commercial banks in the next week or two to minimise the negative impacts on banks' shareholders, depositors and borrowers.
The surcharges would help the Bank of Thailand repay the Financial Institutions Development Fund’s Bt1.14trillion debt, he said.
“The central bank will have to discuss with the Public Debt Management Office how many years it will take to repay the entire debt,” he said after a meeting with BOT Governor Prasarn Trairatvorakul today.
Prasarn said the surcharges on commercial banks would be raised by an appropriate level, so that no “significant” burden is placed on the banks.
Financial authorities are finalising the rate, with the main priority being to limit the negative impacts on depositors and borrowers, he said.
“The extra burden will be minimised. Commercial banks will be required to pay the extra sum in July,” he said.
Through an executive decree that took effect on January 26 last Thursday, the government has empowered the central bank to raise surcharges on banks. The payments will used to reduce the FIDF’s debt.
The surcharges would be on top of the 0.4 per cent of deposits banks already contribute to the Deposit Protection Agency. Under the plan, a decree would be issued soon to channel a “significant” part of the fee to the central bank. The money would be used to finance the FIDF’s interest burden.
