Post by account_disabled on Dec 28, 2023 3:48:43 GMT
Veerathai Santiprabhob, Governor of the Bank of Thailand (BoT or National Bank), further clarified. In the case of requesting Siam Commercial Bank to refrain from paying "Interim dividends" and "Stop buying back shares" that the COVID-19 outbreak is a situation with very high uncertainty. Severely affecting the Thai economic system Still don't know when it will end. And how will it end? Maintaining immunity for the economic system and financial institutions is no less important. More than maintaining immunity for the health of each Thai person, one of the most important immunity of commercial banks is the level of capital that serves as a buffer to absorb the impacts that occur. and uncertainties that will occur in the future. In addition, capital funds will help commercial banks to increase lending. To support the recovery of the Thai economy when the COVID-19 outbreak subsides. In this regard, the past supervision of commercial banks and careful risk management guidelines As a result, the capital level of Thai commercial banks is strong. Commercial banks can therefore issue measures to help care for and provide relief to customers affected by the COVID-19 outbreak.
There are many measures. In the period ahead, we still face high uncertainty. Requesting a commercial bank to make a payment “Interim dividends” and “refrain from stock repurchases” are measures to prevent commercial Email Data banks from “dropping their guard” and to maintain strong capital levels until a new capital management plan can be made more clearly. Assessing the appropriate capital level of commercial banks is like a routine health check. The outbreak of COVID-19 has made commercial banks under lockdown measures unable to clearly assess the impact on both customers and their business plans. The Bank of Thailand therefore asks commercial banks to expedite the review of capital management plans over the next 1-3 years, taking into account the greatly changed situation. In the first half of 2020, the Bank of Thailand has issued several measures to assist debtors and relaxed many regulatory criteria to encourage commercial banks to speed up debt restructuring for debtors. In normal conditions (not everywhere), "interim dividends" will be paid. to shareholders during August “Interim dividends” or interim dividends are dividends paid outside of the accounting period.
No need to wait to calculate operating results at the end of the year. May calculate operating results for the first half of the year and operating results that are expected to occur during the rest of the year to pay "interim dividends" to shareholders around August. shutterstock_1679675464 Image from Shutterstock As for the "share repurchase" in the past, some commercial banks thought that they had higher levels of capital than necessary. or saw that the stock price in the market had dropped to an unreasonably low level, had a plan to "repurchase shares" from general shareholders, meaning buying a certain amount of their own shares from the stock exchange to keep to reduce capital in the future This will result in a decrease in the capital level of commercial banks. (The suspension of share repurchases by commercial banks does not affect the normal trading of commercial banks' shares on the public stock exchange.) Requesting commercial banks to cancel payments “Interim dividends” and “no share repurchases” will have a short-term impact on commercial bank shareholders. But it will be good for shareholders of commercial banks in the long run. It is good for depositors. It is good for the Thai economy as a whole.
There are many measures. In the period ahead, we still face high uncertainty. Requesting a commercial bank to make a payment “Interim dividends” and “refrain from stock repurchases” are measures to prevent commercial Email Data banks from “dropping their guard” and to maintain strong capital levels until a new capital management plan can be made more clearly. Assessing the appropriate capital level of commercial banks is like a routine health check. The outbreak of COVID-19 has made commercial banks under lockdown measures unable to clearly assess the impact on both customers and their business plans. The Bank of Thailand therefore asks commercial banks to expedite the review of capital management plans over the next 1-3 years, taking into account the greatly changed situation. In the first half of 2020, the Bank of Thailand has issued several measures to assist debtors and relaxed many regulatory criteria to encourage commercial banks to speed up debt restructuring for debtors. In normal conditions (not everywhere), "interim dividends" will be paid. to shareholders during August “Interim dividends” or interim dividends are dividends paid outside of the accounting period.
No need to wait to calculate operating results at the end of the year. May calculate operating results for the first half of the year and operating results that are expected to occur during the rest of the year to pay "interim dividends" to shareholders around August. shutterstock_1679675464 Image from Shutterstock As for the "share repurchase" in the past, some commercial banks thought that they had higher levels of capital than necessary. or saw that the stock price in the market had dropped to an unreasonably low level, had a plan to "repurchase shares" from general shareholders, meaning buying a certain amount of their own shares from the stock exchange to keep to reduce capital in the future This will result in a decrease in the capital level of commercial banks. (The suspension of share repurchases by commercial banks does not affect the normal trading of commercial banks' shares on the public stock exchange.) Requesting commercial banks to cancel payments “Interim dividends” and “no share repurchases” will have a short-term impact on commercial bank shareholders. But it will be good for shareholders of commercial banks in the long run. It is good for depositors. It is good for the Thai economy as a whole.