Section 8. No person other than a commercial bank shall undertake the business of commercial banking.

Section 9. No person other than a commercial bank shall use, in the conduct of his business, the name or the business description of a “bank” or any other word or words having similar meaning.

Section 9 bis¹⁷. In addition to undertaking the business of commercial banking, a commercial bank may carry on any business which is connected with or incidental to commercial banking business or any business traditionally regarded as commercial banking practice, such as, the collecting of money against bills, giving of aval to bills, acceptance of bills, issuing letters of credit, or giving guarantees or, if permission is obtained from the Bank of Thailand, any other business of a similar nature; but it shall not carry on any other trade or business.

Section 9 ter¹⁸. A commercial bank may accept deposits of money subject to withdrawal at the end of a specified period by issuing a certificate of deposit.

A certificate of deposit shall contain the following particulars:
(1) the designation of it as a certificate of deposit;
(2) the name of the commercial bank which issues the certificate of deposit;
(3) the date on which the certificate of deposit is issued;
(4) the province where the certificate of deposit is issued;
(5) an unconditional agreement to pay a sum certain in money including interest (if any);
(6) a day of maturity;
(7) the place of payment;
(8) the name of the depositor, or a mention that it is payable to bearer;
(9) the signature of the person authorized to sign on behalf of the commercial bank which issues the certificate of deposit.

Section 9 quarter¹⁹. The provisions of the Civil and Commercial Code Section 899 to Section 907, Section 911, Section 913 (1) and (2), Section 914 to Section 916, the first and the third paragraph of Section 917, Section 918 to Section 922, Section 925, Section 926, Section 938 to Section 942, Section 945, Section 946, Section 948, Section 949, Section 959, Section 967, Section 971, Section 973, Section 986, Section 994 to Section 1000, Section 1006 to Section 1008, Section 1010 and Section 1011 shall apply to certificates of deposit mutatis mutandis.

Section 10²⁰. A commercial bank shall maintain its capital funds in proportion to its assets, liabilities or contingent liabilities in accordance with the rules, procedures and conditions as prescribed by the Bank of Thailand with the approval of the Minister.

The prescription under the first paragraph shall be published in the Government Gazette and if such prescription has the effect of increasing the relevant ratio, it shall not be operative until after the lapse of fifteen days from the date of its publication.

Section 11²¹. A commercial bank shall maintain a cash reserve in proportion to its deposits and/or borrowings as specified in Section 11 bis at not less than the ratio prescribed by the Bank of Thailand with the approval of the Minister.

The ratio prescribed in the first paragraph shall not be less than five per cent or more than fifty per cent of deposits and/or borrowings, as the case may be, and such prescribed ratio may relate to any one type or more of deposits and/or borrowings separately or in combination .

For the purpose of maintaining a cash reserve pursuant to the first paragraph, the Bank of Thailand may designate Thai Government securities to be included as part of such cash reserve.

Section 11 bis²². Deposits and/or borrowings, in which a commercial bank is required to maintain a cash reserve in proportion, are as follows;
1) total deposits;
2) demand deposits;
3) time deposits;
4) total borrowings;
5) each type of borrowings.

For the purpose of calculation of deposits or borrowings as specified in the first paragraph, the Bank of Thailand with the approval of the Minister may prescribe that the total of unused balances of overdrafts can be included as part of any one type of deposits or borrowings.

Section 11 ter²³. A commercial bank shall maintain liquid assets as specified in Section 11 quarter. in proportion to the total or each type of its deposits and/or borrowings at not less than the ratio prescribed by the Bank of Thailand with the approval of the Minister.

The ratio prescribed under the first paragraph shall not be less than five per cent or more than fifty per cent of the total or each type of its deposits and/or borrowings, as the case may be.

In the maintenance of liquid assets under the first paragraph, the Bank of Thailand may prescribe to maintain only some or all types of the liquid assets. In this regard, any ratio may be prescribed for each type of such assets.

Next Page
[1]  [2]  [3]  [4]  [5]  [6]  [7]  [8]  [9]  [10]  [11]

17 As amended by Section 6 and Section 7 of the Commercial Banking Act (No.2), B.E. 2522 respectively

18 As amended by Section 6 of the Commercial Banking Act (No.3), B.E. 2535

19 As amended by Section 6 of the Commercial Banking Act (No.3), B.E. 2535

20 As amended by Section 6 of the Commercial Banking Act (No.3), B.E. 2535

21 As amended by Section 8 of the Commercial Banking Act (No.2), B.E. 2522

22 As amended by Section 9 of the Commercial Banking Act (No.2), B.E. 2522

23 As amended by Section 9 of the Commercial Banking Act (No.2), B.E. 2522