Scope of business under financial system, money market and financial Institutions have not only become more widely interconnected but have also grown more complex domestically and globally. This financial innovation and globalization have brought us benefits as well as vulnerability such as systemic risk. Inevitably, the Bank of Thailand as a financial supervision authority has to ensure the soundness of financial institutions.
A gradual liberalization of trade in financial services in Thailand has allowed Thai commercial banks to establish more branches and to have more business exposures abroad. Reciprocally, a number of foreign banking licenses had also been granted where foreign banks can establish presents in Thailand in various forms, namely branches, Mergers & Acquisitions and subsidiary. Furthermore, a number of commercial banks have been permitted to provide wider scope of businesses related to insurance and security, for instance insurance agents and security dealers etc.
On the regulatory front, the Bank of Thailand does not only oversee commercial banks alone but also the financial business groups as a whole which may include their entities that have already been supervised by specific regulatory agencies such as security companies and insurance companies which are supervised by the Securities Exchange Commission and the Office of Insurance Commission respectively.
In enhancing efficiency of supervision, risk mitigation and exchange of important information, a close collaboration and cooperation between the Bank of Thailand and other financial regulators (domestic and international agencies) is essential. Regulatory agencies that the Bank of Thailand cooperates with are:
The Securities and Exchange Commission (SEC) / Office of Insurance
Central Banks/Other Supervisory Authorities