Role of FIDF

          After Deposit Protection Agency commences its operation on Aug. 11, 2008, the role of FIDF to grant financial assistance to crisis financial institutions changes, According to Section 19 of the Bank of Thailand Act No.4 B.E.2551, within 4 years period after the Deposit Protection Agency Law is in effect , with no other law concerning financial assistance to financial institutions being introduced, when there is an emergency to rehabilitate the crisis financial institutions under section 42 of the Bank of Thailand Act B.E.2485 being applied, Financial Institutions Policy Committee (FIPC) of the Bank of Thailand may suggest to FIDF board the most effectiveness plan or measure to plan or solve the crisis. After FIDF Board agrees to the plan or measure, it must be submitted to the Finance Minister and the Government for approval accordingly.

          After the Government's approval, FIDF shall provide any of the following assistances to crisis financial institutions ;

          1)  granting of loans to financial institutions with or without collateral, in accordance with the rules, measures and conditions prescribed by the Fund Management Committee of the Financial Institutions Development Fund upon the approval of the Minister;

          2)  purchasing or holding shares of any financial institution;

          3)  purchasing, discounting or re-discounting instruments representing claims on obligations or accepting transfer of claims from any financial institution.

          In case that FIDF has to borrow money to avert the crisis under the approved plan or measure, BOT may lend to FIDF or the government may guarantee FIDF's debt whichever the cases may be. Regarding the assistance under the scheme, FIDF must prepare a separate account from normal business. The government will have to absorb the cost of assistances, if any, to FIDF.