Bangkok: The central bank clarified that GULF's stake in KBANK is less than 10%, and the calculation method differs from that of the SEC (Securities and Exchange Commission).
According to Thai News Agency, the Assistant Governor of the Bank of Thailand explained that GULF reported a 10.03% stake in KBANK, in accordance with the SEC's criteria which exclude treasury stocks. However, under the Bank of Thailand's criteria, which includes treasury stocks, the stake is now 9.96%, still within the 10% limit. The Assistant Governor emphasized the bank's readiness to strictly regulate shareholders holding more than 5% and affirmed that virtual banks will use the same standards as commercial banks. It is expected that at least two virtual banks will be established this year.
Mr. Somchai Lertlapwasin, Assistant Governor, Financial Institutions Supervision Department, Bank of Thailand (BOT), clarified the case of Gulf Energy Development Public Company Limited reporting to the Securities and Exchange Commission (SEC) that it had acquired a 10.03% stake in Kasikornbank (KBank). He stated that this was in accordance with the SEC's criteria for deducting shares sold and repurchased by KBank (Treasury Stock) from the calculation base.
While, according to the Bank of Thailand's (BOT) criteria under the Financial Institutions Act, which calculates based on the total number of issued shares and must not exceed 10%, GULF's holdings in KBANK at 9.96% are still below the 10% threshold set by the BOT.
It should be noted that the criterion for holding more than 10% of shares has been in use since 2008 and is not a new measure. The Bank of Thailand (BOT) has a different approach to calculating the shareholding proportion than the Securities and Exchange Commission (SEC) because the BOT includes treasury stock in its calculation base to ensure financial system stability, while the SEC does not, as it focuses on transparency in the capital market.
Regarding the Bank of Thailand's supervision, shareholders holding more than 5% of the shares, considered major shareholders, must report and explain the purpose of their investments, including plans to increase or decrease their shareholding. Furthermore, transactions between major shareholders and financial institutions must adhere to the Arm's Length principle and be subject to strict lending limits. Holding more than 10% of the shares requires prior permission from the Bank of Thailand. The law provides for leniency only in cases necessary for the stability of the financial institution or the stability of the financial system. To date, no investor has applied for permission to hold more than 10% of a commercial bank share.
Regarding GULF's license to establish a Virtual Bank, the Bank of Thailand confirmed that this is separate from its shareholding in commercial banks and there is no direct prohibition against such a link. However, once the Virtual Bank begins operations, it will be subject to the same regulatory framework as traditional commercial banks, including criteria for the qualifications of directors and executives, and measures to prevent conflicts of interest, in order to maintain good governance and the stability of the overall financial system.