The Bank of Thailand will finalise the timeframe under which local commercial banks must comply with the new Basel capital accord over the next few months, according to Tarisa Wattanagase, the deputy central bank governor for the financial institutions stability group.
Local banks are expected to adopt the new accord after 2007, when the Group of 10 (G-10) most developed countries are expected to adopt the new rules.
The capital accord broadly outlines the amount of capital financial institutions must maintain to cushion against potential losses. Current regulations call for banks to maintain capital of at least 8.5% of their risk assets, with different types of assets requiring different levels of coverage based on their potential credit risks.
