BoT defends Thai banks' credibility
- Published: 27/05/2009 at 03:13 PM
- Online news: Breakingnews
The overall financial position of the 11 commercial banks in Thailand is very strong, Bank of Thailand deputy governor Atchana Waiquamdee said on Wednesday.
Her comment came after Moody's Investors Service said it was preparing to review the credibility of 11 banks in the country and they face a possible downgrade.
The 11 banks are Bangkok Bank, Bank of Ayudhya, Export-Import Bank of Thailand, Government Housing Bank, Kasikorn Bank, Krung Thai Bank, Siam City Bank, Siam Commercial Bank, Standard Chatered Bank Thailand, Thai Military Bank and United Overseas Bank Thailand.
She said the commercial banks' risk based capital under the Bank for International Settlement standard stood at 14.5 per cent and she could not see how financial problems would arise.
The capability of Thai authorities to assist the banks was also at an acceptable level, she said.
Siam City Bank president Chaiwat Uthaiwan said he was not concerned about the possible downgrade because the result of the review by Moody's could be positive.
He said a downgrade may affect the issuance of debt securities and investors' confidence.
He predicted the position of Thai banks in the second half of 2009 would improve if the political situation does not affect economic stability.
It would not be necessary for Thai banks to raise extra funds as the country still had abundant liquidity, he said.
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- Writer: BangkokPost.com
