Broking, fund companies pass stress test
Brokerage houses and asset management companies have passed the stress test, according to the Securities and Exchange Commission which conducted the test in light of the intensifying crisis in the euro zone.
SEC Secretary General Vorapol Socatiyanurak said that securities houses have demonstrated sufficient strength in capital fund and clearing capability.
"Our assumption is how resilient the companies would be, should the euro crisis lead to a 10-20 per cent drop in the SET index for 3-5 consecutive days. Our focus was on the clearing system. It turned out that even in the situation, there was no malfunctioning in the clearing activities," Vorapol said.
On fund companies, the SEC found that they are quite immune to external vulnerabilities, given the tiny investment in the euro zone.
The SEC's stress test did not cover listed companies. However, based on cashflow basis, the SEC found that listed companies are financially strong with low debt.
He noted that despite the results, the SEC would closely monitor the situation in the euro zone, as the crisis should take years to unwind.
