15 March 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
Financial Institution Business Act B.E. 2551
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BHUMIBOL ADULYADEJ, REX.,
Given on the 27th day of January B.E. 2551;
Being the 63rd year of the Present Reign
By Royal command of His Majesty King Bhumibol Adulyadej, it is hereby proclaimed that:
Whereas it is deemed expedient to revise and combine the law relating to commercial banking and the law relating to the undertaking of finance business, securities business and credit foncier business;
This Act contains certain provisions in relation to the restriction of rights and liberties of persons in respect of which Section 29, in conjunction with Section 31, Section 33, Section 36, Section 39, Section 41 and Section 43 of the Constitution of the Kingdom of Thailand so permit by virtue of law;
Be it, therefore, enacted by His Majesty the King, by and with the advice and consent of the National Legislative Assembly, as follows:
Section 1 This Act shall be called the “Financial Institution Business Act B.E. 2551”.
Section 21 This Act shall enter into force after one hundred and eighty days from the date of its publication in the Government Gazette.
Section 3 The following laws shall be repealed:
(1) the Commercial Banking Act B.E. 2505;
(2) the Commercial Banking Act (No. 2) B.E. 2522;
(3) the Emergency Decree amending the Commercial Banking Act B.E. 2505, B.E. 2528;
(4) the Commercial Banking Act (No. 3) B.E. 2535;
(5) the Emergency Decree amending the Commercial Banking Act B.E. 2505 (No. 2) B.E. 2540;
(6) the Emergency Decree amending the Commercial Banking Act B.E. 2505 (No. 3) B.E. 2540;
(7) the Emergency Decree amending the Commercial Banking Act B.E. 2505 (No. 4) B.E. 2541;
(8) the Act on the Undertaking of Finance Business, Securities Business and Credit Foncier Business B.E. 2522;
(9) the Emergency Decree amending the Act on the Undertaking of Finance Business, Securities Business and Credit Foncier Business B.E. 2522, B.E. 2526
(10) the Emergency Decree amending the Act on the Undertaking of Finance Business, Securities Business and Credit Foncier Business B.E. 2522 (No. 2) B.E. 2528;
(11) the Act on the Undertaking of Finance Business, Securities Business and Credit Foncier Business (No. 2) B.E. 2535;
(12) the Act on the Undertaking of Finance Business, Securities Business and Credit Foncier Business (No. 3) B.E. 2535;
(13) the Emergency Decree amending the Act on the Undertaking of Finance Business, Securities Business and Credit Foncier Business B.E. 2522 (No. 3) B.E. 2540;
(14) the Emergency Decree amending the Act on the Undertaking of Finance Business, Securities Business and Credit Foncier Business B.E. 2522 (No. 4) B.E. 2540;
(15) the Emergency Decree amending the Act on the Undertaking of Finance Business, Securities Business and Credit Foncier Business B.E. 2522 (No. 5) B.E. 2541.
Section 4 In this Act, “financial institution business” means the commercial banking business, finance business and credit foncier business and shall include the undertaking of specialized financial institution business.
“commercial banking business” means the business of accepting deposits of
money or accepting money from the public subject to withdrawal on demand or at the end of a
specified period and of employing such money in one or several ways such as
granting of credits, buying and selling of bills of exchange or any other negotiable instrument,
buying and selling of foreign exchange.
“finance business” means the business of accepting deposits of money or accepting money from the
public subject to withdrawal on demand or at the end of a specified period, which is not the
accepting of deposits or money within the account subject to withdrawal by cheque, and of employing
such money in one or several ways such as granting of credits, buying and selling of bills of
exchange or any other negotiable instrument.
“credit foncier business” means the business of accepting deposits of money or accepting money
from the public subject to withdrawal at the end of a specified period and of employing such money
in any matter as follows:
(1) lending money on the security of mortgage of immovable property;
(2) buying immovable property under contract of sale with right of redemption
“financial business” means commercial banking business, finance business, credit foncier business,
securities business, derivative business under the law on derivatives, life insurance business
under the law on life insurance or other businesses as prescribed in the notification of the Bank
of Thailand.
“granting of credits” means lending money or purchasing, discounting, rediscounting bills, becoming
a creditor upon having paid or ordered that an amount of money be paid on behalf of a customer, or
becoming a creditor upon having paid in accordance with an obligation specified in a letter of
credit or other obligations.
“credit-like transaction” means factoring transaction, hire purchase transaction, leasing
transaction and other transactions similar to granting of credits as prescribed in the
notification of the Bank of Thailand.
“securities” means securities in accordance with the laws related to securities
and exchange.
“financial institution” means:
(1) a commercial bank;
(2) a finance company;
(3) a credit foncier company.
“commercial bank” means a public limited company licensed to undertake commercial banking business
and shall include a retail bank, a foreign commercial bank’s subsidiary and a foreign commercial
bank’s branch licensed to undertake commercial banking business.
“retail bank” means a public limited company, licensed to undertake commercial banking business
with the main objective of providing services to retail customers as well as small and
medium-sized enterprises and restricted to undertake business related to foreign currencies,
derivatives and other high risk transactions as prescribed in the notification of the Bank of
Thailand.
“foreign commercial bank’s subsidiary” means a public limited company licensed to undertake
commercial banking business whose shares are , directly or indirectly, held by a foreign
commercial bank in the amount not less than ninety-five percent of its total number of shares
sold.
“foreign commercial bank’s branch” means a branch of a foreign commercial bank licensed to
undertake commercial banking business in Thailand;
“finance company” means a public limited company, licensed to undertake
finance business.
“credit foncier company” means a public limited company, licensed to undertake credit foncier
business.
“capital funds” means money with the following characteristics:
(1) the paid-up capital, including premiums of shares received by a financial institution and
money received by such financial institution as a result of issuance of
certificates representing the rights to buy shares of such financial institution;
(2) statutory reserve;
(3) reserves appropriated from net profits at the end of each accounting period in accordance with the resolution of the shareholders meeting or the regulations of such financial institution, excluding reserves for the diminution of the values of assets and
reserves for repayment of debts;
(4) net profit after appropriation;
(5) reserves arising from assets revaluation, other reserves; or
(6) money which a financial institution receives from issuing a debt instrument or an instrument or any other money as prescribed in the notification of the Bank of
Thailand
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1. Publish in the Government Gazette Vol. 104, Part 254, Special Issue, dated 7th December B.E. 2530
(1987). |
