9 April 2013

Unofficial Translation
This translation is for the convenience of those unfamiliar with the Thai language.
Please refer to the Thai text for the official version.
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BANK OF THAILAND ACT
B.E. 2485
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IN THE NAME OF HIS MAJESTY KING ANANDA MAHIDOL THE COUNCIL OF REGENCY (by notification of the President of the Assembly of the People’s Representatives, dated 4th August B.E. 2480 and 16th December B.E. 2484) ADITAYA DIBHA ABHA PRIDI BHANOMYONG Enacted on the 28th day of April B.E. 2485; Being the 9th year of the Present Reign.

Whereas the Assembly of the People’s Representatives has passed a resolution that it is expedient to constitute to central bank in the Kingdom,

Be it therefore enacted by the King by and with the advice and consent of the Assembly of the People’s Representatives, as follows:-

Chapter 1 Preliminary
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Section 1 This Act shall be called the “Bank of Thailand Act, B.E. 2485.”

Section 2 This Act shall come into force on and from the day following the date of its publication in the Government Gazette.

Section 3 In this Act¹ “Financial Institution” means
(1) a commercial bank,
(2) a finance company,
(3) a credit foncier company,
(4) any other juristic person prescribed by the Minister in the Government Gazette.

“International Monetary Fund” means the International Monetary Fund under the Agreement on the International Monetary Fund, of which Thailand is a member.

“Governor” means the Governor of the Bank of Thailand.

“Deputy Governor” means the Deputy Governor of the Bank of Thailand

“Officer” means the Officer of the Bank of Thailand.

“Employee” means the Employee of the Bank of Thailand.

“Minister” means the Minister in charge of the enforcement of this Act.

Section 4² The Minister of Finance shall have charge and control of the execution of this Act and shall have a power to promulgate the ministerial regulations and notifications for the implementation of this Act.

The ministerial regulations and notifications shall be effective after being published in the Government Gazette.

Chapter 2³
Constitution and Objectives
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Section 5 There shall be constituted a central bank called “the Bank of Thailand”, hereby referred to as “the BOT”.
The BOT is a juristic person which is a state agency, and is neither a government agency nor state enterprise under the law on budgetary procedure and other laws.

Section 6 The BOT shall have its head office in Bangkok and may establish branch offices or representative offices in any other place in the Kingdom and, with the prior approval of the Minister, may establish outside the Kingdom.

Section 7 The BOT’s objectives are to carry on such tasks as pertain to central banking in order to maintain monetary stability, financial institution system stability and payment systems stability.

To undertake the tasks in paragraph one, the implementation of economic policy of the government shall be taken into consideration.

Section 8 The BOT shall be empowered to transact businesses to attain the objectives under Section 7 and such powers shall include the following businesses:
(1) the issue and management notes of the government and bank-notes;
(2) the formulation and implementation of monetary policies;
(3) the management of the assets of the BOT;
(4) the acting as a banker and the securities registrar to the government;
(5) the acting as a banker to financial institutions;
(6) the establishment or supporting of the establishment of a payment system;
(7) the supervision and examination of financial institutions;
(8) the management and administration of the exchange rate under the exchange rate regime, including the management and administration of the assets of the Currency Reserve, as prescribed in the law on currency.
(9) the control of foreign exchange as prescribed in the law on foreign exchange control.
(10) the undertaking under other laws as prescribed to be the authorities of the BOT.
(11) other act in relation to or in conjunction with the management to attain the objectives of the BOT.

The BOT may have ownership, the right of possession or other real rights and may manage assets or claims or may establish of rights or may do any juristic act either within or outside the Kingdom.

Section 9 The BOT shall be prohibited from undertaking the following acts;
(1) engaging in trade or otherwise have a direct interest in any commercial or industrial or other beneficial undertakings directly with the public, provided that the BOT may acquire interest in the course of the satisfaction of any of its claims.
(2) purchasing or holding shares of any other financial institution or company, except for
(a) the shares in the Bank for International Settlements or international financial institutions;
(b) the shares acquired as a result of a debt settlement or a guarantee of loans granted to financial institutions as prescribed by this Act.
(3) purchasing or possessing any immovable property, except
(a) in so far as is necessary for its own business premises or for the purpose of its own business;
(b) those acquired as a result of a debt settlement or a guarantee of credit granting.
(4) granting loans in any other case beyond the prescription in this Act.
(5) being employed in the printing of notes of the Government, bank-notes, bonds, stamp duty and other printings which have a security feature system against counterfeiting, including the distribution of printing ink or tools in relation to the printing of such things, except in the case where it is in corporation with Thai government, Foreign governments, International organizations, Financial Institutions or juristic persons established by any specific laws and upon the approval of the BOT Board.

Any interest or immovable property acquired by the BOT in accordance with paragraph one (1) or (3) (b) shall be disposed within 5 years from the date of acquisition, unless such immovable property will be used for premises or for the purpose of the BOT’s business.

Section 10 For the purpose of providing the statistic of balance of payment, international investment position and the financial statistic of the country, the BOT shall be empowered to order persons who conduct international monetary transactions and international investment transactions to submit the information relating the said transactions to the BOT in accordance with the rules and conditions prescribed by the BOT and published in the Government Gazette.

Section 11 The BOT’s business shall not be subject to the law on labor protection, the law on social security, the law on worker’s compensation and the law on labor relation. Nevertheless, the BOT shall arrange to have rules or regulations providing the officers and employees the benefits not less than those prescribed in the law on labor protection, the law on social security, the law on worker’s compensation and the law on labor relation.

Chapter 3⁴
Capital and Reserve
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Section 12 The initial capital of the BOT shall be Baht 20 million.
The capital of the BOT may be increased or reduced by the approval of the Cabinet.

Section 13 The reserves of the Bank of Thailand shall consist of;
(1) ordinary reserves intended to cover possible loss;
(2) reserves derived from the revaluation of assets and liabilities; and
(3) other reserves for particular purposes as may be established by the BOT Board upon the approval of the Minister.

Section 14 The net annual profits of the BOT after deduction of accumulated loss, if any, shall be provided in the following order for:
(1) ordinary reserve amounting to 25 per centum;
(2) other reserves for particular purposes, as specified by the BOT Board, upon the approval of the Minister.

Any remaining net profits after the BOT’s operation in paragraph one shall be paid in as state revenues.

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1 As amended by Section 3 of the Bank of Thailand Act (No.4) B.E. 2551

2 As amended by Section 3 of the Bank of Thailand Act (No.4) B.E. 2551

3 As amended by Section 5 of the Bank of Thailand Act (No.4) B.E. 2551.

4 As amended by Section 7 of the Bank of Thailand Act (No.4) B.E. 2551.