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BOT Press Release No. 77/2020


BOT allows Financial Institutions dividend payment
considering overall economic stability and impacts on stakeholders

          ​Mr. Ronadol Numnonda, Deputy Governor, Financial Institutions Stability, the Bank of Thailand (BOT) revealed that the BOT has provided a guideline for 2020 dividend payment by taking into account financial institutions’ capital plans and stress test results for the year 2020 – 2022, which showed that financial institutions have adequate levels of capital and loan loss provision to withstand the impact of COVID-19. Furthermore, financial institutions have enhanced their awareness and readiness to deal with the uncertainty by continuously increasing their loan loss provision. As shown in the figures, the NPL coverage ratio and the BIS ratio of the Thai banking system in the 3rd quarter of the year 2020 are 150% and 19.8%, respectively.

          However, due to the high uncertainty in the near future, the BOT supports the preventive measures by allowing financial institutions to pay dividends for the year 2020 not exceeding last year payout ratio and 50% of this year’s net profit. This is in line with guidelines of many overseas regulators and will benefit financial institutions’ shareholders, depositors, and debtors in the long run.

           The aforementioned policy would help ensure the resilience of the Thai financial system, continuously maintain high level of capital as safeguard against the uncertainties and serve as important mechanism to support the economic recovery as the COVID-19 situation improves.

Bank of Thailand
12 November 2020

For further information, please contact : Regulatory Policy Department
Tel : +66 2283 5313, +66 2283 5874, +66 2283 6821
E-mail : FIAPTeam@bot.or.th; RCTeam@bot.or.th  

>>​Download​​ Press PDF

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About BOT
  • Roles & History
  • Good Corporate Governance
  • Laws And Regulations
  • Organization And Executives
  • Committee
  • Financial Reports
  • Banknotes
  • Museum
Monetary Policy
  • Monetary Policy Committee (MPC)
  • MPC Knowledge
  • Economic Conditions
  • Research and Conference Papers
  • Regional Economy
Financial Institutions
  • Financial Institutions Policy Committee
  • Thailand’s Financial Institutions​
  • BOT Roles and Responsibilities
  • Financial Institutions Supervision in Practice
  • Financial Institutions Policy
  • Supervision of Other Financial Corporations
  • Supervisory Coordination
Financial Markets
  • Monetary Operations
  • Financial Market Development
  • Foreign Exchange Market
  • Foreign Reserves Management
  • Foreign Exchange Regulations
  • Thai Reference Rate and LIBOR Transition
Payment Systems
  • Payment Systems Committee (PSC)
  • Payment Systems Policy
  • Oversight of Payment Systems
  • Payment Systems Act
  • Oversight of e-Payment Service Providers
  • BOT's Payment System Services
  • Payment Systems Standards
  • Payment Systems Notification & Circulars
  • Financial Technology
Statistics
  • Financial Markets
  • Economic and Financial
  • Financial Institutions
  • Payment Systems
  • Regional Economic and Financial
  • Key Economic Indicators
  • Selected Recent Developments
  • BOT API
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