Bank of Thailand confirms the FRCD decision does not affect status And financial liquidity
25 Mar 2020

SME Bank confirms FRCD decision does not affect status And financial liquidity
Enough reserve is sufficient. Able to continue the mission of supporting SMEs

 

 

Ms. Narnnari Ratthapat, Managing Director The Small and Medium Enterprise Development Bank of Thailand or SME Bank said that in the case of Standard Chartered Bank (Thai) Public Company Limited (SCBT) being the plaintiff, the bank filed a lawsuit against SME Bank claiming for payment under the derivative contract. Cross currency swap (CCS) and interest rate swaps (IRS) on floating rate certificates of deposit (FRCD), which are Such is the case of disputed transactions that occurred since 2549 and the subsequent litigation, the Court of First Instance and the Court of Appeal. On 27 October 2015, the Court of First Instance dismissed the case of the bank. Next, SCBT appealed to the Court of Appeal. Until June 22, 2017, the Court of Appeal issued a verdict to the Bank of Thailand to make payment under the lawsuit, totaling 5,597 million baht. And finally, on March 24, 2020, the Supreme Court issued a verdict to uphold the Appeal Court

 

 Bank of Thailand has planned to reserve money in advance since the dispute Resulting in sufficient reserve funds. Therefore, the payment does not affect the financial status of the bank in any way, including depositors or creditors Not affected either, because SME bank has strong financial status. Stable and stable Because it is the main financial institution of the government Under the supervision of the Ministry of Finance And the Ministry of Industry Having financial security status The Ministry of Finance holds 99.1758% of the total shares and the capital adequacy ratio (BIS ratio) of 10.02% exceeds the criteria set by the Bank of Thailand (BOT). The government attaches importance to the Bank of Thailand because it is Specialized financial institutions of the government that are responsible for promoting Support SMEs to gain knowledge about capital partners.

 

 The Bank of Thailand has disclosed such information. And financial statements report In the annual report of every year

 

For dealing with persons involved in such transactions, the SME Bank has set up a committee to investigate the facts. And set up a committee to investigate discipline of related persons And punished four employees, including filing complaints to the National Counter Corruption Commission (NACC). If any conclusion from the NACC. Will proceed with all relevant parties