The Bank of Thailand (BOT) wants commercial banks to fully adopt its corporate governance guidelines in both documentary and practical aspects.

Tarisa Watanagase, the BOT's deputy governor, said the bank's managers all had clearly defined responsibilities, in line with its own guidelines.

However, she said some banks had only paid lip service to the guidelines and done little to implement them, for example keeping on board members who regularly fail to attend meetings.

The BOT wants to create a system of bank management dominated by checks and balances, which can probe into a bank's structure and report its findings, she said.

"They should be examined by another party and not report on themselves."

Tarisa said in some US banks, the president and CEO was the same person which could cause many management troubles.

"Having rules but failing to enforce them, is better than having no rules and doing nothing. It is best to have rules and follow them," she said.

Tarisa insisted the central bank would issue no additional guidelines on the management of banks.

Meanwhile, the BOT said the industry'sloans to related parties in February totalled Bt183.76 billion or 3.14 per cent of all loans, showing an increase from the same period last year, when loans stood at Bt120.49 billion or 2.18 per cent.

Tarisa said the increased figure might not be caused by lending to the related parties but by the debt restructuring process and the figures should be carefully examined.

The bank is required to publicly disclose loans to related parties.

Anoma Srisukkasem

The Nation