Kittiratt urges banks' recapitalisation
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Thai banks are encouraged to recapitalise now, to cope with growing loan demand particularly ahead of the activation of the Asean Economic Community (AEC) in 2015.
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said on the sidelines of Office of Insurance Commission's seminar today that he supported Krung Thai Bank (KTB)'s recapitalisation and urged other banks to follow suit.
"Asean economies are expanding and higher capital fund will ensure leap-frog growth in loans for Thai banks," he said. He understood that banks are reluctant to do so, for fear of short-term dilution effect.
Meanwhile, he also said that the Finance Ministry stands aready to sell its 26 per cent stake in TMB Bank, should any good offer appear. ING Bank is another major shareholder of the bank, holding a 25.19 per cent stake.
