The Bank of Thailand (BOT) was first set up as the Thai National Banking Bureau. The Bank of Thailand Act was promulgated on 28 April 1942 vesting upon the Bank of Thailand the responsibility for all central banking functions. The Bank of Thailand started operations on 10 December 1942.[1]

1. Overview of Thailand Banking Industry
Chanidapa Srithongdee
Senior Examiner
Bank of Thailand
This material is prepared under the responsibilityof the presenter, all remarks representthe presenter’sown views.

2. Outline Thailand Financial Institution : Regulator
Bank of Thailand Roles and Responsibilities
Laws And Regulations
Commercial Banks in the System
Performance of the Thai Banking System
Overview of Supervisory Procedures
Banking Industry Challenges

3. Ministry of Finance
Bank of Thailand
 Thai Commercial banks
 Foreign bank branches
 Finance & Credit Foncier
 Representatives
 Asset Management Co.
 National Credit Bureau
 Credit Companies
Securities and
Exchange
Commission
 Supervisory agency
for capital market
 Securities
Businesses
 Derivatives Business
Fiscal Policy
Office
 Specialized Financial
Institutions
eg. Government
Saving Bank /
Government Housing
Bank
Office of Insurance
Commission
 Insurance
Business
Ministry of Agriculture &
Cooperative
Cooperative Auditing
Department
 Cooperatives
Ministry of Information &
Communication Technology
Electronic Transactions
Commission
FinancialServicesprovidersRegulatorsMinistryLevel
 Banks
 Non-Banks, e.g.
Telcos, Post offices,
Counter services, e-
money providers, Card
Issuers
 Payment Switchers
 Payment Gateway
Providers
Payment Services Providers Financial Institutions CapitalMarkets Semi-formal FIs
Thailand Financial Institution : Regulator
Overview of Thailand Financial Institution

4. Overview of Thailand Financial Institution
Bank of Thailand Roles and Responsibilities

5. BOT ROLES (FINANCIAL INSTITUTIONS)
Overview of Thailand Financial Institution
9

6. Bank of Thailand Organization Chart
Overview of Thailand Financial Institution
5

7. The Bank of Thailand Board
Overview of Thailand Financial Institution
6
The Bank of Thailand Board consists of the Chairman, Governor as the
Deputy – Chairman, 3 Deputy – Governors, the Secretary of the Office of
the National Economic and Social Development, the Director of the Fiscal
Policy Office and 5 members appointed by the Minister of Finance.
The Governor appoints an officer of the Bank of Thailand as the Secretary.

8. The Financial Institutions Policy Committee (FIPC)
The Financial Institutions Policy Committee (FIPC) is one of the main
committees of the Bank of Thailand. The FIPC is responsible for setting
prudential policy, regulations and supervisory practices to ensure the safety
and soundness of financial institutions.
Overview of Thailand Financial Institution
7

9. Laws And Regulations
BOT Notifications/Circulars

10. Commercial Banks are key players in the system
Thailand Financial Institution
Overview of Thailand Financial Institution
Commercial
Banks (30)
46.6%
SFIs (6)
15.6%
Cooperatives
(1,986)
6.5%
Depository Cooperations 69.4% Non-Depository Cooperations 30.6%
Mutual Funds
(1,437)
11.1%
Insurance (86)
8.5%
Others
9.3%
Credit
Cards and
P-Loan
(37) 2.4%
10Source : Bank of Thailand
Asset size of FIs as of Dec 2016

11. Commercial Banks in the system
Types Number Banks
Thai Commercial Banks 14
Retail Banks 1
Subsidiary 4
Foreign Bank Branches 11
Overview of Thailand Financial Institution
11Source : Bank of Thailand

12. Overview of Thailand Financial Institution
Top5=67%
As of Dec 2016
Total Asset of all Commercial Banks
17 Trillion Baht
12Source : Bank of Thailand

13. Thai Commercial Banks Peer Group Criteria
Size
Market Share
(Total asset/ Total Asset of Thai Com. Banks)
Previous Present
Large Banks 10% or above 10% or above
Middle Banks 3% and less than 10% 2.5% and less than 10%
Small Banks less than 3% less than 2.5%
Overview of Thailand Financial Institution
13Source : Bank of Thailand

14. Performance of the Thai Banking System
Overview of Thailand Financial Institution
Source : Bank of Thailand

15. Performance of the Thai Banking System
Overview of Thailand Financial Institution
Source : Bank of Thailand

16. Performance of the Thai Banking System
Overview of Thailand Financial Institution
Source : Bank of Thailand

17. Performance of the Thai Banking System
Overview of Thailand Financial Institution
Source : Bank of Thailand

18. Overview of Thailand Financial Institution
Overview of Supervisory Procedures
14

19. Rating
Composite
Rating
1 Excellent
2 Good
3 Moderate
4 Weak
5 Poor
Corporate Loan
Housing Loan
Hire Purchase
Derivatives
IT
ALM
SMEs Loan
Credit Card /
Personal Loan
Quality
of Risk
Mgt.
Inherent
Risk
Composite Rating
Governance
Net Risk
Capital Earning
BOT Significant Activities Framework
19
Overview of Thailand Financial Institution

20. Unstable global
economy and
unexpected situation
Regulatory
Change
Technology and
Digitalized
High Level of
Competition
This material is prepared under the responsibilityof the presenter, all remarks representthe presenter’sown views.
Issues that Thailand is Facing
Banking Industry Challenges
17

21. *Target of 50%-60% of transations
become cashless by 2020
Issues that Thailand is Facing
*Source : Thai Banking Association
18

22. 2014 2015 2016 YoY
Internet Banking
No. of agreements 10,159,971 11,901,117 15,095,696 27%
Volume of transactions
(‘000 Transactions)
188,409 186,237 240,461 29%
Value of transactions (Billions of Baht) 20,500 23,630 29,706 26%
Mobile Banking
No. of agreements 6,229,960 13,918,815 20,883,147 50%
Volume of transactions
‘000 Transactions)
109,350 263,923 584,983 122%
Value of transactions (Billions of Baht) 1,364 2,800 5,361 91%
2015 2016 Jun-17
Number of All Branches of Commercial Banks 7,061 7,016 6,920
Operating branches of Commercial Banks registered in Thailand and Foreign Bank Branches
Volume and value of use of I-Banking and M-Banking
Source : Bank of Thailand
Issues that Thailand is Facing