Officials from the Bank of Thailand (BOT) and Stock Exchange of Thailand today said they believed that the impact of the collapses on the Thai economy and stock market will be limited.
Deputy Government Spokesperson Traisulee Traisaranakul has affirmed that Thailand’s commercial banks and financial institutions have not been impacted by the recent collapses of Silicon Valley Bank and Signature Bank in the United States, while noting that the situation is still closely being monitored.
According to the spokesperson, no Thai commercial banks or financial institutions had invested or engaged in any transactions with the two failed U.S. banks. She added that the impact of the closures on the U.S. economy has so far been limited due to swift intervention by U.S. regulators.
A Bank of Thailand (BOT) report from the end of 2022 revealed that all Thai commercial banks’ Bank for International Settlements (BIS) amounted to 19.4%, with a liquidity coverage ratio (LCR) of 197.3 and the amount of non-performing loans at 2.73%. The NPL coverage ratio stands at 171.9%, with credit extension and deposits broadly spread and not concentrated within certain groups.
Traisuree emphasized that the strict enforcement of measures by the BOT has strengthened the Thai banking system and enabled commercial banks to weather global financial and pandemic crises.
The deputy spokesperson added that Thailand has sound systems in place to protect depositors through the creation of a 124 billion baht fund that guarantees the deposits of up to 98% of bank deposits, to the tune of 1 million baht per depositor.
National News Bureau : http://thainews.prd.go.th