BoT to issue new bank licences

The Bank of Thailand (BoT) is ready to grant operating permits to new commercial banks now the cabinet has approved the 2nd Financial Institution Development Plan (2010-14), BOT governor Tarisa Wattanagase said on Wednesday.

The central bank governor said the approved plan will help strengthen financial institutions by cutting operating costs, reducing non-performing loans, and  ensuring easier access to financial sources for small and medium enterprises.

 Mrs Tarisa said the financial institution development plan has three phases;

1)  The first two years will be a period for strengthening financial institutions, and the merger of small and medium commercial banks to increase competitiveness..
2)  From 2012-13, the central bank will allow branches of foreign banks to upgrade to commercial bank status, on condition that each bank must have first level capital of no less than 10 billion baht.
3) From 2014 competition will be opened up. The central bank will grant licences to new commercial banks to bridge the gap between financial institutions - for example, in microfinance - because about 10 per cent of the people now have no access to financial services.