BBL struggles to sell holding
Bangkok Bank (BBL) needs to ask the Bank of Thailand's approval to extend the deadline to sell shares of ACL Bank if the largest commercial bank cannot unload its 19-per-cent holding in the smaller bank in time, according to the central bank's assistant governor Samart Buranawatanachoke.
Samart said yesterday that BBL was required to give an acceptable reason as to why it failed to sell the ACL Bank stake as previously scheduled. "The bank has had enough time to put ACL Bank shares up for sale. I believe the schedule should have been achievable," said Samart, adding that BBL must inform it of how long it wanted to extend the deadline. Earlier, a BBL executive said that the bank might need to extend the deadline as it had found it harder than expected to sell ACL Bank shares in the current economic slump. According to the central bank's financial master plan, each commercial bank is prohibited from holding any stake in other banks, based on the principle of "one presence". BBL is obliged to unload a 10-per-cent stake in ACL by June and 9 per cent by the end of the year. BBL has, however, said that it wants to sell its entire stake by June. BBL has been negotiating with domestic and foreign financial institutions on the deal. Meanwhile, the Bank of Thailand has allowed finance and credit companies that failed to upgrade to bank status to continue their business until the draft of the Financial Institution Business Act is approved. Samart said the bill paved the way for financial institutions to become credit companies, which are not allowed to take deposits like commercial banks but can lend with properties as collateral.
Anoma Srisukkasem The Nation
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