Finance firms to recapitalise
Five specialised financial institutions will raise funds totalling less than Bt30 billion, to comply with the new accounting standard, says Fiscal Policy Office director-general Pannee Sathavarodom.
The recapitalisation plans will be forwarded to Deputy Finance Minister Sommai Phasee for consideration next Wednesday."We consider it unnecessary for specialised banks to have too high a level of capital-adequacy ratio [CAR], because these banks have been established to serve the government, and the government guarantees them. There is no need to raise specialised banks' CAR to the same level as that of commercial banks. The appropriate level for them is 10 per cent," said Pannee. The central bank requires commercial banks to have a minimum CAR of 8.5 per cent of risk-weighted assets, but all commercial banks now have a CAR of at least 12 per cent, in order to meet the stringent accounting-standard practice under the International Accounting Standard 39. The five institutions are the Government Housing Bank, the Small and Medium Enterprises Development Bank of Thailand, the Export-Import Bank of Thailand, the Bank for Agriculture and Agricultural Cooperatives and Secondary Mortgage Corp. Pannee said the institutions' management plans were of greater importance than the injection of fresh funds. They have asked for a total of Bt30 billion, but the Finance Ministry will inject less than that, she said.
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