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Notification for Establishing a Commercial Bank

How can a company establish a commercial bank in Thailand?
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This document sets out the rules, procedures and conditions for establishing a commercial bank in Thailand. It is divided into four chapters listed below.

General provisions, including:

  • Definitions of terms like commercial banks, retail banks, net capital funds, impaired assets, total assets, etc;
  • A stipulation on the maximum amounts of various kinds of loans;
  • The conditions for application.

Qualifications for an applicant eligible to apply to establish a commercial bank, including:

  • Qualification as a finance company;
  • Possession of high quality management;
  • Maintenance of the ratio of net capital funds to risk weighted assets, etc.

The submission of the application to establish a commercial bank - it states that the company must submit:

  • Its application to The Bank of Thailand;
  • Documents that include:
    • A business plan;
    • Projected financial statements;
    • Details of the organizational structure, etc.
  • Details of the Board and its sub-committees;
  • Details of each shareholder;
  • A work plan to facilitate the undertaking of commercial banking business, with evidence to ensure full compliance with certain conditions.

The commercial banking license review process, which includes:

  • A committee review of the application to establish a commercial bank;
  • A submission of the list of qualified applicants and necessary documents;
  • Suggestions on mergers, acquisitions, etc.

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