BOT may relax stake cap for ACL Bank
The Nation (15 October 2007)
The Bank of Thailand (BOT) says it will consider relaxing the foreign-shareholder ceiling of 25 per cent for ACL Bank. "ACL Bank must inform the central bank how the new [foreign] shareholder would help improve it or add anything it lacks," assistant governor Sorasit Soontornkes said last week. The central bank will generally consider any such request on one of two conditions: the local bank must be undergoing either rehabilitation or expansion. He said ACL Bank would have to explain how the new foreign partner could improve its business or provide desired benefits based on a business plan. For example, the partner might help the bank develop its information-technology system or improve its future operations. Earlier, the central bank said ACL Bank's request would come under the current Commercial Bank Act, which caps foreign shareholding at 25 per cent. Bangkok Bank (BBL) is being required by the BOT to reduce its shareholding in ACL Bank from 19 per cent to zero, in order to comply with the one-presence principle of the Financial Sector Master Plan. ACL Bank is required to submit to the BOT a profile of the new foreign partner buying BBL's stake in it, while BBL must report the name of the party to the BOT. Meanwhile, TMB Bank and BankThai have already sent the central bank their recapitalisation plans and are expected to complete the process by the end of the year, Sorasit said. The BOT next week will also meet with the Thai Bankers' Association to discuss obstacles the SME Fund has faced and which regulations have restrained its lending.
The Nation (15 October 2007)
The Bank of Thailand (BOT) says it will consider relaxing the foreign-shareholder ceiling of 25 per cent for ACL Bank. "ACL Bank must inform the central bank how the new [foreign] shareholder would help improve it or add anything it lacks," assistant governor Sorasit Soontornkes said last week. The central bank will generally consider any such request on one of two conditions: the local bank must be undergoing either rehabilitation or expansion. He said ACL Bank would have to explain how the new foreign partner could improve its business or provide desired benefits based on a business plan. For example, the partner might help the bank develop its information-technology system or improve its future operations. Earlier, the central bank said ACL Bank's request would come under the current Commercial Bank Act, which caps foreign shareholding at 25 per cent. Bangkok Bank (BBL) is being required by the BOT to reduce its shareholding in ACL Bank from 19 per cent to zero, in order to comply with the one-presence principle of the Financial Sector Master Plan. ACL Bank is required to submit to the BOT a profile of the new foreign partner buying BBL's stake in it, while BBL must report the name of the party to the BOT. Meanwhile, TMB Bank and BankThai have already sent the central bank their recapitalisation plans and are expected to complete the process by the end of the year, Sorasit said. The BOT next week will also meet with the Thai Bankers' Association to discuss obstacles the SME Fund has faced and which regulations have restrained its lending.
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