(Unofficial Translation) 11 January B.E.2544To Managers Branches of All Foreign Banks Ref.BOT.FPG.(11)C.43/2544 Re: Circulation of the Notification of the Ministry of Finance Re: Prescription on maintenance of assets by branches of foreign banks. Herewith attached is the Notification of the Ministry of Finance regarding: Prescription on maintenance of assets by branches of foreign banks issued as of 8 December B.E. 2543 which was published in Government Gazette, General Issue, Vol.117, Special Part 129, dated 19 December B.E.2543 The essences of the Notification are as follows: 1. To repeal the Notification of the Ministry of Finance regarding: Prescription on maintenance of assets by branches of foreign banks dated 19 August B.E.2541 and replace with the revised Notification of the Ministry of Finance. 2. To repeal the permission, which counts the following investments using the capital funds of the branches of foreign banks, as assets of Section 6 of the Commercial Banking Act B.E.2505 as amended by the Commercial Banking Act (No.2) B.E.2522 (1) Investments in shares in limited companies, which finally invest the fund in ordinary of preferred shares of commercial banks and finance companies registered in Thailand, in accordance with a scheme approved by the Bank of Thailand, and (2) Investments in ordinary of preferred shares of commercial banks and finance companies registered in Thailand. Please be informed and observe. Regards, (Mrs. Tarisa Watanagase) Assistant Governor Financial Institutions Policy Group for GovernorEnc.the Notification of the Ministry of Finance Re: Prescription on maintenance of assets by branches of foreign banks dated 8 December B.E.2543Financial Institution Policy Department Tel 283-5869, 283-6877 (Unofficial Translation) Notification of the Ministry of Finance Re:Prescription on maintenance of assets by branches of foreign banks _________ By the virtue of the provisions of Section 6 of the Commercial banking Act B.E.2505 as amended by the Commercial Banking Act (No.2) B.E. 2522, the Ministry of Finance hereby issues the following regulations. Article 1. The Notification of the Ministry of Finance Re: Prescription on maintenance of assets by branches of foreign banks dated 19th August B.E.2541 shall be repealed. Article 2. Branches of foreign banks licensed to undertake the business of commercial banking under Section 6 shall maintain assets in Thailand at not less than Baht 125 million in value. Article 3. Assets to be maintained by branches of foreign banks under Article 2 shall bu as follows: (1) deposits at the Bank of Thailnad, Thai Government securities, bonds issued by the Bank of Thailand and bonds issued by FIDF; (2) shares, debentures, of debt instruments issued by the Bank for Agriculture and Agricultural Cooperatives of The Industrial Finance Corporation of Thailand; (3) debentures, of debt instuments guaranteed by the Ministry of Finance in respect of both the repayment of principals and the payment of interest thereon; (4) debentures, bonds, of debt instruments issued by state organizations or state enterprises established under a specific law or other state enterprises as approved by the Bnak of Thailand; (5) immovable properties for use as premises for business or for officers and empolyees, after deduction of depreciation value as approved by the Bank of Thailand. Article 4 In maintaining assets under Article 3, branches of foreign banks shall comply with the following procedures and conditions (1) assets to be maintained shall be unencumbered with and charge: (2) assets to be maintained shall be apart from liquid assets requird to be maintained under Section 11 ter; (3) assets under Article 3(1)-(4) shall be assessed at market value or at cost, whichever is the lower; (4) assets under Article 3(5) shall be maintained not exceeding 20 per cent of the assets required to be maintained; (5) assets required to be maintained shall be acquired with funds under the third paragraph of Section 6; (6) as for usage of funds for the maintenance of assets under Article 3, a branch of a foreign bank having inter-office acounts with its head office or ther branches shall, at any time, be in net debit balance position to its head office of such other branches in the amount not less than assets required to be maintained under Article 3. As to the computation of the amount of such net debit balance, the amount which such branch of a foreign bank is in debt to its head office or such other branches shall be deducted by: (1) the amount of debt which such branch is the creditor of its head office of such other branches (net inter-office transaction credit) and (2) net annual operating loss which has been certified by an auditor in Thailand. Article 5. Branches of foreign banks, licensed to undertake the business of commercial banking under Section 6 with respect to international banking facilities in accordance with the Notification of the Ministry of Finance Re : The Operation of International Banking facilities by Commercial Banks dated 16th September B.E.2535 or the subsequent amendments in relation thereto, shall maintain assets in Thailand at not less than Bath 100 million or its equivalence and such assets can be maintained in any form. This Notification shall come into force on and from the date of its publication in the Government Gazette. Given on 8th December B.E.2543 (Mr.Tarrin Nimmanahaeminda) Ministry of Finance* This translation is for convenience of those who are not familiar with Thai language. for official purpose, only Thai texts ane relevent