Division V
Acting as the Banker to Financial Institutions
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Section 41 With respect to the acting as the banker to financial institutions, the BOT shall have powers and duties as follows;
(1) granting loans to financial institutions with maturity not exceeding 6 months with first-rate collateral assets as prescribed by the BOT under Section 33 (7), in accordance with the rules and conditions specified by the BOT;
(2) being a custodian of monies, securities or other articles of value of financial institutions; including the collection of proceeds, whether principal or interest, of any such securities;
(3) ordering any financial institutions to submit a report concerning assets, liabilities, contingent liabilities as prescribed by the BOT and may require any financial institution to explain or clarify such report.

The granting of loans in paragraph one shall include the purchase with a right to sell back transaction of first-rate collateral assets under Section 33 (7) from the financial institution.

Section 42 In the case where any financial institution faces liquidity problem which may seriously endanger the stability of economic and monetary system as a whole and the BOT consider that the granting of loans or giving financial assistance to such financial institution may help maintaining the stability of economic and monetary system, the BOT, upon the approval of the Financial Institutions Policy Board and the approval of the Cabinet, may grant loan or give financial assistance by other means to the said financial institution.

In the case where the financial institution hold shares or properties of any other financial institution or any juristic person which may be used as collateral, such shares or properties shall be used to guarantee the granting of loans or financial assistance in paragraph one, in accordance with rules, procedures and conditions prescribed by the Financial Institutions Policy Board.

The granting of loans or assistance in paragraph one shall include the purchase, purchase with a right to sell back contract, discounting or re-discounting of bills or transferable instruments and undertaking the contingent liabilities for the benefit of the financial institution.

Section 43 The BOT shall have a special preferential right in precedence against other general preferential rights for the obligations arisen from the granting of loans or financial assistance under Section 42 and against monies, securities or properties of the financial institution and shares or properties of other juristic persons used as collateral, only those in the possession of the BOT.

Division VI
Establishment or Support of the establishment of Payment Systems
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Section 44 The BOT shall establish or support the establishment of payment systems including the clearing system among financial institutions and the management of such systems, for the purpose of the security and effectiveness of the systems, in accordance with the rules and conditions prescribed by the BOT.

Section 45 In the operation concerning the payment systems which has been established by the BOT under Section 44, in the case where the BOT deems necessary to grant loans, it shall comply with the rules and conditions as prescribed by the Payment Systems Board. In case of the granting of loan for intra-day liquidity, the BOT may or may not charge interest or remuneration or may or may not call for collateral thereto.

Chapter 7
Prevention of the Conflict of Interest of the Officers
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Section 46 The Governor, the Boards, the officers and employees shall not conduct any act which may cause the conflict of their personal interest and the BOT’s interest, or may contravene the performance of duties.

Section 47 In performing of duties, an officer or employee shall disclose information, concerning conflict of interest with respect to the matters assigned to him or her, to the Governor, the BOT Board, the Monetary Policy Board, the Financial Institutions Board or the Payment Systems Board, as the case may be. He or she shall not consider or participate in the meeting in relation to such matter until there is a decision regarding the solution on the matter, in accordance with the regulations prescribed by the BOT Board.

Section 48 The officers or employees shall not hold any position or be employed or accept to conduct any business in financial institutions, except allowed in accordance with the regulations prescribed by the BOT upon the approval of the BOT Board.

Chapter 8
Supervision
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Section 49 The general supervision of the affairs of the BOT is vested in the Minister.

Section 50 For the maintenance of economic stability, monetary stability or financial institutions system stability, the Minister and the Governor may arrange a consultation as deemed appropriate.

Section 51 Where there is an incident which may cause effects or serious damages to the economic stability, monetary stability or financial institutions system stability, the BOT shall, to the Minister, report the facts of the case, assess possible impacts or damages, analyze problems and propose solutions promptly, for further consideration.

For the purpose of preventing or alleviating the incident which may cause effects or serious damages to the economic stability, monetary stability or financial institutions system stability, the Minister may order the BOT to report the facts of the case, analyze problems and propose solutions for further consideration.

Section 52 In the case where the net position of international reserve is below the minimum level to maintain the monetary and exchange rate stability, the BOT shall promptly report to the Minister, along with proposing the solutions of such problem. Then, the Minister shall further submit to the Prime Minister for acknowledgement.

Chapter 9
Accounting, Examination, Auditing and Reporting
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Section 53 The financial year of the BOT shall be the calendar year.

Section 54 The accounting of the BOT shall be in compliance with the Generally Accepted Accounting Principles except for a particular matter which the BOT Board has prescribed to be in conjunction with general practices of other central banks.

Section 55 There shall be a group of Auditing Committee consisting of not less than 3 and not more than 5 persons appointed by the BOT Board, 2 of those shall be the experts in the BOT Board and one of those shall be an external person, for the purpose of supervising the BOT’s business and quarterly reporting to the BOT Board and the Minister.

Section 56 The Office of the Auditor-General shall be the Accounting Auditor of the BOT.

Section 57 Within 3 months from the end of a financial year, the BOT shall annually submit the financial statement of the BOT, Currency Reserves, notes issuance business, of which has been certified by the Governor and examined and opined by the Auditor, to the Minister for publication in the Government Gazette.

Apart from financial statement to be submitted in paragraph one, the BOT shall submit the report of the BOT Board on the summary of the operation of the BOT throughout the year to the Minister.

Section 58 The BOT shall provide the report indicating the official international reserve position, whether in the aggregated position, the net position and the net forward position, by monthly publishing in the Government Gazette.

Section 59 At the end of each week, the BOT shall publish a weekly report on the BOT’s position, regarding financial condition, currency reserve and bank-notes issuance business , and submit to the Minister for publication in the Government Gazette.

Section 60 For the purpose of maintenance of economic stability, monetary stability or financial institutions system stability, the BOT shall provide a monthly report on the economic condition with any relevant information to the Minister, along with the analysis and the operational guideline thereon.

Section 61 For every 6 months period, the BOT shall provide the report on economic condition, monetary policies, financial institutions policies, payment system policies, the operational guideline and the assessment, to the Minister in order to submit to the Cabinet for recognition. Such report shall be made within 60 days from the date of June 30th and December 31st of each year.

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