History of FIDF

          FIDF was established on November 27th 1985 through the enactment of an Emergency Decree regulating the Affairs of the Bank of Thailand Act. The objective of FIDF is to relax BOT limitation in implementing financial support measures for rehabilitation and development of the financial institutions to maintain stability in the system especially when there is a financial crisis. The financial assistances measurers have been performed under the scope and framework of BOT guideline and government policy.

          At the first stage FIDF granted financial assistances to insolvent financial institutions. As a result, FIDF became major shareholder of some specific commercial banks and asset managements companies. The then FIDF's role not only included granting liquidation but also managing assets and speeding up debt collection process. By that time FIDF still ensured the security of the financial system by providing the full guarantee for both depositors and creditors. The full coverage for creditors had been withdrawn in 2003.

          On Aug. 11, 2008 whereas Deposit Protection Agency Law is in effect, the role of FIDF to guarantee depositor comes to an end. The Deposit Protection Agency becomes the new organization to be responsible for deposit guarantee. FIDF's main mission is now focusing on managing assets and liabilities to liquidation and finally closes down the operation. However, within 4 years period if there is no other law concerning financial assistance to financial institutions being introduced. FIDF has to act under Article 19 of the Bank of Thailand Act (No. 4) B.E.2551 to financially assist insolvent financial institutions. The financial assistances must be approved by the government and the government will have to absorb the cost of assistance, if any, to FIDF.

Juristic Status

          FIDF is a separated juristic entity from the Bank of Thailand. The Fund Management Department of Bank of Thailand carry on the operations of FIDF and provide administrative staffs. FIDF keep its own accounting records and budget. The Auditing General Office audit FIDF and report the audit result to the Minister of Finance and inform BOT.

Management

          FIDF is managed by the Fund Management Committee, comprising of the governor of BOT as a chairman, the Permanent Secretary of Finance Ministry as Deputy Chairman, and not more than 9 committee members appointed by the Minister of Finance. Recently, there are 9 committee members comprising of 3 BOT representatives, 3 Ministry of Finance representatives, 1 from the Attorney General office and 1 from the state of Council Office. The assistant governor of Fund Management Group, BOT, is a committee, secretary of FIDF's committee and the manager of FIDF.