77
Table 1. Thailand: Summary Compliance with the Basel Core Principles (continued)
force at the time of the assessment but is likely to address most of the recommendations
listed above.
Principle 19
Concentration Risk and Large Exposure Limits
Comments
The assessors reviewed examination reports, risks assessments, and a Pillar 2 assessment
and concluded that the BoT supervisors review concentration risks adequately.
Principle 20
Transactions with Related Parties
Comments
Except for credit cards, directors, bank management, and persons with power of
management are not permitted to borrow from the bank. The framework regulating related
party lending is comprehensive and compliance closely supervised by the BoT.
Principle 21
Country and Transfer Risks
Comments
Cross-border activities, including establishing onsite presence, are increasing. Examiners
conduct onsite reviews of cross-border offices as warranted. Country risk manual should be
enhanced by providing best practices on strategic risk analysis of banks expanding
cross-border and linking to corporate customers due diligence that they are serving.
Principle 22
Market Risk
Comments
Market risk is considered low and is monitored through onsite and offsite activities. Trading
income is less than 10 percent of Thai bank earnings. Stress tests do not disclose any
significant impacts.
Principle 23
Interest Rate Risk in the Banking Book
Comments
Fixed car loans funded by floating rate deposits; represents the main risk. But the exposure
is small, less than 8 percent of total loans and is housed in banks that the BoT judges able
to manage the risk
Principle 24
Liquidity Risk
Comments
Operationally, liquidity is monitored through gap analysis and is mainly derived from
deposits. LCR and NSFR have been adopted.
Do'stlaringiz bilan baham: |
