State banks to come under BOT's rules of conduct
The Bank of Thailand (BOT) will expand the scope of market conduct rules to state banks and nano-finance business, said Jaturong Jantarangs, assistant governor for supervision group 1.
The rules currently apply only to private commercial private.
They were set to ensure that banks are sustainable under sound management for the benefits and protection of clients.
State banks have already been informed that they will be subjected to the same criteria as their commercial counterparts. The BOT has been steering financial service providers to responsible and fair market practices under three main pillars: First, customers are assured that they will receive fair and sincere services; second, customers are given appropriate and clear advice; and third, customers are given products or services at reasonable prices and fair conditions.
Financial service providers must also help customers realise their rights and responsibilities.
Chatchai Payuhanaveechai, president of the state-owned Government Savings Bank (GSB), said the market conduct rules would ensure that customers of state owned banks are treated fairly, adding that
the bank has adopted these rules for more than a year. He expects they would be imposed on state banks next year.
The rules would not affect GSB operations and sales as adjustment had already been made, he said.