The update directly addresses reserve requirement regulations for commercial banks, a core supervisory tool for retail banking operations and monetary policy implementation.
Low confidence — REQUIRES HUMAN REVIEW. This is purely regulatory/supervisory guidance on reserve calculations; no investment services, asset management, or client-facing investment angle is present.
Specialism
The amendment modifies how reserve balances are calculated and excludes specific categories of funds, directly affecting the liquidity management and reserve requirement framework that commercial banks must maintain.
Mandatory inheritance: Liquidity is a child of Prudential Standards, so Prudential Standards must be raised as the secondary tag.
2026-06-29 11:13:32·pthandapani@vixio.com
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TITLE: Thailand's Bank of Thailand Amends Reserve Requirement Rules for Commercial Banks
BODY:
On June 8, 2026, the Bank of Thailand (BOT) announced Notification No. 28/2569 amending reserve requirement regulations for commercial banks. The notification modifies how reserve balances are calculated to exclude funds allocated for specific government-supported financial measures, including the Small and Medium-Sized Enterprises (SMEs) Credit Boost Program and assistance for debtors affected by severe flooding in Thailand's southern region.
The BOT introduced these changes in collaboration with the Ministry of Finance to support economic recovery amid trade uncertainty and structural shifts in technology, environment, and geopolitics. The Cabinet acknowledged these measures on February 3, 2026. Funding derives from financial institutions' savings generated by reduced fee contributions to the Financial Institutions Development Fund (FIDF) following the BOT's fee reduction. These funds are deposited in institutions' current accounts at the BOT.
The amended notification redefines "reserve balances" under the Bank of Thailand Notification No. SorKorNgor. 56/2558 dated September 21, 2015, to exclude three categories: money received in advance maintained separately under payment system law; money received for acting as designated agent banks under debt-relief programs; and funds deposited specifically for credit support or financial relief measures. This exclusion ensures the reserve requirement continues functioning as a key monetary policy instrument and liquidity management tool while accommodating government relief efforts.
The notification applies to all commercial banks subject to existing reserve requirement regulations. The amendment came into force on the day following its publication in the Government Gazette.
Unofficial Translation This translation is for the convenience of those unfamiliar with the Thai language. Please refer to the Thai text for the official version. -------------------------------------------- Bank of Thailand Notification No. 28/2569 Re: The Requirements for Commercial Banks on the Maintenance of Reserve Balances at the Bank of Thailand (Reserve Requirement) (No. 4) --------------------------------------------- 1. Objective Amid heightened economic uncertainty driven by shifting trade dynamics and structural changes in technology, the environment, and geopolitics, business credits have continued to contract, particularly among small and medium-sized enterprises (SMEs). These headwinds may hamper broad-based economic recovery. In addition, severe flooding in the southern region has caused damage to lives, property, and businesses in affected areas. In response, the Bank of Thailand (BOT), in collaboration with the Ministry of Finance, introduced the SMEs Credit Boost Program to facilitate new credits to targeted businesses with potential and launched assistance measures for debtors affected by the severe flooding in the southern region (Level 4) to support relief, rehabilitation, and recovery. These measures were acknowledged by the Cabinet on 3 February 2026. Funding for these measures is provided by financial institutions through savings arising from the reduction in their fee contributions to the Financial Institutions Development Fund (FIDF), following the BOT’s fee reduction. These funds are deposited in the institutions’ current accounts maintained at the BOT. To ensure that the Reserve Requirement continues to serve its intended purposes as a key instrument for monetary policy implementation and liquidity management in the banking system, the BOT deems it appropriate to amend the Notification on Reserve Requirement to exclude funds allocated for the implementation of the aforementioned measures, as well as any similar financial measures that may be introduced in the future, from the calculation of reserve balances. 2. Statutory Authority By virtue of the provision of Section 34 of the Bank of Thailand Act B.E. 2485 (A.D. 1942) as amended by the Bank of Thailand Act (No. 4) B.E. 2551 (A.D. 2008). 3. Amended Notification The Bank of Thailand Notification No. SorKorNgor. 56/2558 Re: The Requirements for Commercial Banks on the Maintenance of Reserve Balances at the Bank of Thailand (Reserve Requirement) dated 21 September B.E. 2558 (A.D. 2015) and its amendments. 4. Scope of Application This Notification shall be applied to commercial banks under the Bank of Thailand Notification No. SorKorNgor. 56/2558 Re: The Requirements for Commercial Banks on the Maintenance of Reserve Balances at the Bank of Thailand (Reserve Requirement) dated 21 September B.E. 2558 (A.D. 2015). 5. Contents Repeal the definitions of “Reserve balances” in clause 4.1 of the Bank of Thailand Notification No. SorKorNgor. 56/2558 Re: The Requirements for Commercial Banks on the Maintenance of Reserve Balances at the Bank of Thailand (Reserve Requirement) dated 21 September B.E. 2558 (A.D. 2015) and its amendments, and replace them with the following: “Reserve balances” means deposits in commercial banks’ current accounts at the BOT excluding the balances of (i) money received in advance that are separately maintained by commercial banks according to the payment system law, (ii) money received for acting as the designated agent banks under the debt-relief programs, and (iii) funds deposited specifically for credit support or financial relief measures. 6. Effective Date This notification shall come into force on the day following the date of its publication in the Government Gazette. Announced on 8 June 2026. (Mr. Vitai Ratanakorn) Governor Bank of Thailand Financial Markets Department Tel. 0 2628 6025-7