Unofficial Translation
with the courtesy of The Foreign Banks' Association
This translation is for the convenience of those unfamiliar
with the Thai language.
Please refer to the Thai text for the official version.
-----------------------------------------------
THE BANK OF THAILAND
28 June B.E. 2547
To Manager
All Commercial Banks
All Finance Companies and Credit Foncier Companies
No. ThorPorTor.SorNorSor. (12) Wor. 1157 / 2547 Re: Clarification on Compliance with the One Presence Policy
1. Objective
As many financial institutions had inquired about an action plan to comply with the One Presence policy in accordance with the circulation letter No.ThorPorTor.SorNorSor. (12) Wor. 852/2547 Re: Clarification on Compliance with the One Presence policy in the Financial Sector Master
Plan dated 4 May B.E. 2547, the Bank of Thailand (BOT) thereby would like to clarify additional detail on this issue.
2. Scope of Application
This circulation letter is to be used as a guideline for a financial institution with more than one forms of deposit taking institutions within the same business group, where such financial institution does not intend to apply or is not qualified to be upgraded in accordance with the Notification of the Ministry of Finance Re: Rules, Procedures, and Conditions for Establishing a
Commercial Bank dated 23 January B.E. 2547, the Notification of the Ministry of Finance Re: Rules, Procedures, and Conditions for Establishing a Branch of Foreign Bank dated 23 January B.E. 2547, or the Notification of the Ministry of Finance Re: Rules, Procedures, and Conditions for Establishing a Commercial Bank that is a Subsidiary of Foreign Bank dated 23 January B.E. 2547
3. Content
3.1 Information in an action plan to comply with the One Presence policy An action plan to comply with the One Presence policy (action plan) should at least comprise the detail on how the financial institution will proceed in order to comply with the One Presence policy, for example, acquisition or merger, sale of business or return of the license to undertake financial business that will cease operation, or accepting the transfer of assets and liabilities, wholly or partly, from other financial institutions within the same business group. The action plan should include detailed procedures on various actions to be taken, as well as the timeframe for each procedure, including return of the license to undertake financial business (if any). In case that assets and/or liabilities need to be appraised, the appraisal method used must be specified. In addition, the action plan must explain how the stakeholder such as creditors, debtors, and employees will be dealt with.
As for the detail on financial projection and financial ratios, the BOT would like to know more of the financial stability and operating performance of the financial institution after proceeding with the action plan than the feasibility of the action plan. Therefore, the BOT will assess stability from a balance sheet of the financial institution that will continue to operate on the date of compliance with the One Presence policy (the date on which the license to undertake financial business within the same business group is returned) and a balance sheet and profit & loss account at the end of the year after complying with the One Presence policy. Important financial ratios are, for example, capital adequacy ratio, non-performing assets ratio, and provisioning adequacy during the same period as the financial projection. In this respect, the
projection should be made by assuming that the Minister of Finance will grant the approval to the action plan by the end of January B.E. 2548, which corresponds to the period of approving a plan to be upgraded.
3.2 Timeframe in complying with the One Presence policy after receiving the approval
Once the action plan above is approved by the Minister of Finance and the tax law, rules, and regulations related to the revocation of the international banking facilities tax benefits is in effect, commercial banks and branches of foreign banks with international banking facilities and/or provincial international banking facilities must proceed according to the above plan
and return the license to operate the international banking facilities and/or provincial international banking facilities within 6 months.
As for an acquisition or merger or return of license to undertake financial business that will cease operation or accepting assets and liabilities from other forms of deposit-taking financial institutions, other than the international banking facilities or provincial international banking acilities, the action plan should be proceeded within 1 year from the Minister of Finance's approval date (see attachment).
In case where compliance with the One Presence policy results in a request for waiver of supervisory rules or incurs tax and fee obligation, the financial institution should specify the detail of the request for waiver of supervisory rules, as well as the issue concerning such tax and fee in the action plan so that the BOT can consider the waiver or proceed further as deemed necessary and appropriate.
Please be informed and comply with the rules described above.
With regards.
(Mrs. Tarisa Watanakase)
Deputy Governor (Financial Institutions Stability)
For Governor
Enclosure: Chart of the timeframe to comply with One Presence policy
Financial Institutions Strategy Department
Tel. 0-2283-6826, 0-2283-6875, 0-2283-6298
Note [
] The Bank of Thailand will arrange a clarification meeting on .........at...........
[X
] No clarification meeting will be arranged.
-YK-
with the courtesy of The Foreign Banks' Association
This translation is for the convenience of those unfamiliar
with the Thai language.
Please refer to the Thai text for the official version.
-----------------------------------------------
THE BANK OF THAILAND
28 June B.E. 2547
To Manager
All Commercial Banks
All Finance Companies and Credit Foncier Companies
No. ThorPorTor.SorNorSor. (12) Wor. 1157 / 2547 Re: Clarification on Compliance with the One Presence Policy
1. Objective
As many financial institutions had inquired about an action plan to comply with the One Presence policy in accordance with the circulation letter No.ThorPorTor.SorNorSor. (12) Wor. 852/2547 Re: Clarification on Compliance with the One Presence policy in the Financial Sector Master
Plan dated 4 May B.E. 2547, the Bank of Thailand (BOT) thereby would like to clarify additional detail on this issue.
2. Scope of Application
This circulation letter is to be used as a guideline for a financial institution with more than one forms of deposit taking institutions within the same business group, where such financial institution does not intend to apply or is not qualified to be upgraded in accordance with the Notification of the Ministry of Finance Re: Rules, Procedures, and Conditions for Establishing a
Commercial Bank dated 23 January B.E. 2547, the Notification of the Ministry of Finance Re: Rules, Procedures, and Conditions for Establishing a Branch of Foreign Bank dated 23 January B.E. 2547, or the Notification of the Ministry of Finance Re: Rules, Procedures, and Conditions for Establishing a Commercial Bank that is a Subsidiary of Foreign Bank dated 23 January B.E. 2547
3. Content
3.1 Information in an action plan to comply with the One Presence policy An action plan to comply with the One Presence policy (action plan) should at least comprise the detail on how the financial institution will proceed in order to comply with the One Presence policy, for example, acquisition or merger, sale of business or return of the license to undertake financial business that will cease operation, or accepting the transfer of assets and liabilities, wholly or partly, from other financial institutions within the same business group. The action plan should include detailed procedures on various actions to be taken, as well as the timeframe for each procedure, including return of the license to undertake financial business (if any). In case that assets and/or liabilities need to be appraised, the appraisal method used must be specified. In addition, the action plan must explain how the stakeholder such as creditors, debtors, and employees will be dealt with.
As for the detail on financial projection and financial ratios, the BOT would like to know more of the financial stability and operating performance of the financial institution after proceeding with the action plan than the feasibility of the action plan. Therefore, the BOT will assess stability from a balance sheet of the financial institution that will continue to operate on the date of compliance with the One Presence policy (the date on which the license to undertake financial business within the same business group is returned) and a balance sheet and profit & loss account at the end of the year after complying with the One Presence policy. Important financial ratios are, for example, capital adequacy ratio, non-performing assets ratio, and provisioning adequacy during the same period as the financial projection. In this respect, the
projection should be made by assuming that the Minister of Finance will grant the approval to the action plan by the end of January B.E. 2548, which corresponds to the period of approving a plan to be upgraded.
3.2 Timeframe in complying with the One Presence policy after receiving the approval
Once the action plan above is approved by the Minister of Finance and the tax law, rules, and regulations related to the revocation of the international banking facilities tax benefits is in effect, commercial banks and branches of foreign banks with international banking facilities and/or provincial international banking facilities must proceed according to the above plan
and return the license to operate the international banking facilities and/or provincial international banking facilities within 6 months.
As for an acquisition or merger or return of license to undertake financial business that will cease operation or accepting assets and liabilities from other forms of deposit-taking financial institutions, other than the international banking facilities or provincial international banking acilities, the action plan should be proceeded within 1 year from the Minister of Finance's approval date (see attachment).
In case where compliance with the One Presence policy results in a request for waiver of supervisory rules or incurs tax and fee obligation, the financial institution should specify the detail of the request for waiver of supervisory rules, as well as the issue concerning such tax and fee in the action plan so that the BOT can consider the waiver or proceed further as deemed necessary and appropriate.
Please be informed and comply with the rules described above.
With regards.
(Mrs. Tarisa Watanakase)
Deputy Governor (Financial Institutions Stability)
For Governor
Enclosure: Chart of the timeframe to comply with One Presence policy
Financial Institutions Strategy Department
Tel. 0-2283-6826, 0-2283-6875, 0-2283-6298
Note [
] The Bank of Thailand will arrange a clarification meeting on .........at...........
[X
] No clarification meeting will be arranged.
-YK-