meta_id 3279152

On June 8, 2025, the Bank of Thailand (BOT) issued Notification No. 28/2569 amending the commercial bank reserve requirement regulations. The amendment modifies the definition of "deposits" under the existing reserve requirement framework to exclude certain funds held by commercial banks. The BOT introduced this amendment to support two key credit relief initiatives announced by the Cabinet on February 3, 2025. The first is the SMEs Credit Boost programme, designed to help small and medium-sized enterprises (SMEs) access necessary credit during economic uncertainty driven by trade volatility, technological change, environmental concerns, and geopolitical shifts. The second initiative provides assistance to borrowers affected by severe flooding in Thailand's southern region, classified as level 4 disaster areas. These programmes are funded through reduced contributions by financial institutions to the Financial Institution Development Fund (FIDF). Under the amended regulations, commercial banks may deposit funds designated for these credit relief initiatives and other future ad-hoc financial measures into current accounts at the BOT without these deposits counting toward reserve requirement calculations. The revised definition of "deposits" now excludes: advance deposits held under payment system laws; funds received by banks acting as agents for borrower assistance programmes; and funds deposited specifically for borrower assistance or implementation of financial programmes or measures. This exclusion ensures that the management of credit relief funding does not compromise the BOT's liquidity management objectives or monetary policy implementation, as reserve requirements remain a critical tool for system liquidity management. The notification takes effect from the day following its publication in the Royal Gazette.