Finance and credit foncier companies are non-bank lending institutions providing credit products to businesses and individuals, matching the Lending Providers category, though the update focuses on reserve requirements rather than direct lending conduct.
The update involves regulatory adjustments to liquidity and reserve management for non-bank credit providers, which has a secondary dimension related to broader financial services supervision but does not clearly trigger Investment Services inheritance.
Specialism
The amendment modifies reserve requirement calculations for finance and credit foncier companies, which directly relates to prudential liquidity and capital management standards.
Mandatory inheritance: Prudential Standards requires Governance as a parent tag to reflect the regulatory framework governing these reserve requirement obligations.
2026-06-29 11:13:34·pthandapani@vixio.com
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TITLE: Thailand's Bank of Thailand Amends Reserve Requirement Rules for Finance and Credit Foncier Companies
BODY:
On June 8, 2026, the Bank of Thailand (BOT) issued Notification No. 27/2569 amending reserve requirement regulations for finance companies and credit foncier companies. The amendment modifies the definition of "deposits" under the existing reserve requirement framework to exclude certain funds held by these institutions.
The BOT introduced the amendment to support two government-backed financial assistance initiatives. The first is the Small and Medium-sized Enterprise (SME) Credit Boost programme, designed to provide targeted business operators with access to necessary credit amid economic uncertainty, trade volatility, and technological and geopolitical shifts. The second measure provides relief to borrowers affected by severe flooding in Thailand's southern region, classified as level-four disaster areas. The BOT and Ministry of Finance jointly implemented these measures, which the Cabinet approved on February 3, 2026.
The funding for these initiatives derives from a reduction in the Financial Institution Development Fund (FIDF) fee contribution rate announced by the BOT. Finance and credit foncier companies deposit these funds in current accounts at the BOT. The amendment excludes from reserve requirement calculations: funds received by these institutions when acting as agent banks for borrower assistance programmes, and deposits designated specifically for implementing financial assistance or other government financial measures. This exclusion prevents the management of funds for these programmes from undermining the BOT's liquidity management objectives and monetary policy implementation.
The amendment applies to all finance companies and credit foncier companies as defined under the BOT's existing reserve requirement notification dated March 23, 2017. The regulation takes effect from the day following its publication in the Royal Gazette.