Notification for Establishing a Commercial Bank

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.