Credit union cooperatives have mushroomed in Thailand, but regulation has failed to catch up to such rapid growth.
Klongchan Credit Union Cooperative's 12-billion-baht embezzlement scandal has underscored the lax regulation and enforcement, signalling a problem that could snowball in the future and cause major damage if regulations are not fixed.
Even though credit cooperatives run similar operations to banks in terms of deposits and lending, they are not supervised by the Bank of Thailand nor the Finance Ministry. The Cooperative Promotion Department under the Ministry of Agriculture and Cooperatives is in charge of supervising cooperatives across the country.
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