Central bank to more actively oversee good governance

BANGKOK, July 29 (TNA) – Bank of Thailand (BoT) deputy governor Bandid Nijathaworn on Tuesday revealed the central bank will play a more active role in supervising the corporate good governance of financial institutions.

By virtue of the Financial Institutions Business Act of 2008, he said, the bank would have the authority to establish the structure of its board of directors and sub-committees.

In addition, the appointment of directors and top executives of financial institutions must receive approval, not simply acknowledgement, from the central bank.

The central bank is still authorised to establish duties of the board of directors of financial institutions.

Under BoT regulations, bank directors and top executives, to win appointment approval from the central bank, must have proper
qualifications in three aspects including honesty and being known in the community, knowledge, competence and experience, and financial integrity.

The board of directors of financial institutions shall have main duties in four aspects including risk management, supervising the capital adequacy, regulating businesses to ensure they comply with official rules, and overseeing good governance of the corporation. (TNA)