BOT to issue 5 new banking licenses
Foreign banks are allowed a bigger presence in Thailand, with the invitation to set up subsidiaries that can open upto 20 branches and 20 off-premise ATMs.
Bank of Thailand on Friday issued the announcement, inviting interested foreign banks to establish subsidiaries here. Licenses will be awarded to five banks. Applications are welcomed from July 2 until the end of this year. The application review process is expected to complete by the middle of 2014.
The newly incorporated subsidiaries must have at least Bt20 billion minimum paid-up capital.
The applicants must be foreign commercial banks whose countries of origin has significant business relations with Thailand in the areas of finance, trade and investment, or whose countries of origin has a free trade agreement with Thailand or allows Thai banks to operate at a similar level as commercial banks.
"The permission for the establishment of new foreign commercial banks is in accordance with the Financial Sector Master Plan Phase II (BE2553-2557), by which the Cabinet has approved the framework," the central bank said.
The move is to enhance competition and financial access, thereby improving efficiency of the Thai financial system and supporting international trade and investment, particularly from regional liberalisation.
