pc
nid 93634
Jul 01, 2026
pthandapani@vixio.com
Thailand
bank of Thailand Regulations
financial services
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1880 charsThailand's Bank of Thailand Amends Reserve Requirement Rules for Finance and Credit Foncier Companies
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.
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1611 charsBank of Thailand Amends Reserve Requirement Rules for Finance and Credit Foncier Companies
The Bank of Thailand (BOT) has issued the Bank of Thailand Notification No. 27/2569 regarding the Prescription on Maintenance of Deposits at the Bank of Thailand by Finance Companies and Credit Foncier Companies (Reserve Requirement) (No. 2).
The amended notification contains:
New definitions for key terms including "Deposit", redefining it as the current account deposits of finance companies and credit foncier companies at the BOT, and explicitly excluding funds received for acting as an agent bank for debtor assistance programs or funds deposited specifically for carrying out financial projects and measures.
Regulations prescribing the calculation of reserve requirements, stipulating that funds allocated for targeted assistance, such as the SMEs Credit Boost and the Level 4 severe southern flood relief measures, shall not be counted as deposits.
Provisions outlining the source of funding for these assistance measures, identifying that the funds stem from reduced Financial Institutions Development Fund (FIDF) fee contributions that financial institutions deposit in their BOT current accounts.
Specific rules mandating the exclusion of these specific funds from reserve requirement calculations, ensuring that the administration of these relief measures does not interfere with the BOT's monetary policy implementation and system liquidity management.
Administrative measures detailing the repeal and replacement of the definition of "Deposit" in Clause 4.1 of the previous Bank of Thailand Notification No. SorKorNgor. 28/2560 dated March 23, 2017.
The amendments take immediate effect.