BOT caps single lending by state institutions
The Bank of Thailand (BOT) has issued 30 regulations on the operations of specialised financial institutions, including state-owned banks and agencies .
The rules, effective October 1, mainly aim to ensure capital and liquidity adequacy at these institutions which in turn would boost confidence on the part of their clients.
One of the rules caps single lending or loan offering by state banks to major customers, hence their lending will not be tilted towards any individual.
It also limits lending by Government Savings Bank, the Bank for Agriculture and Agricultural Cooperatives (BAAC), GH Bank, and Small and Medium Enterprise Development Bank of Thailand to any single client to a maximum of 15 per cent of their individual capital.
The same rule applies to loans from Export-Import Bank of Thailand (EXIM Thailand) and Secondary Mortgage Corporation, capping their single lending at not more than 25 per cent of their individual capital.
