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SCB reaffirms strong capital reserves, attesting its position as a domestic systemically important bank (D-SIB)

 

 

 

               The Bank of Thailand has named commercial banks classified as Domestic Systemically Important Banks (D-SIBs), comprising Bangkok Bank, Krungthai Bank, Bank of Ayudhaya, Kasikornbank, and Siam Commercial Bank.  

 

            Mrs. Kittiya Todhanakasem, Chief Financial Officer, Siam Commercial Bank noted that the announcement is in line with the Bank of Thailand’s supervision guidelines seeking to comply with Basel III to ensure that D-SIBs are stable and develop in a sustainable manner, while increasing operating efficiency even more.  D-SIBs will be required to increase Common Equity Tier 1 capital by 1% to 9.5% by 2020, while the total Capital Adequacy Ratio (CAR) will be 12%.

 

            As of 31 August 2017, SCB’s CTE1 ratio and CAR stood at 15.49%, and 17.62%, respectively, exceeding the BOT’s minimum requirements, both current and future (as shown in the table below).  SCB has always placed a priority on maintaining capital reserves higher than BOT’s minimum requirements to be ready for continuing business expansion. 

 

           With SCB’s strong capital reserves, SCB will not be in any way negatively affected by this announcement. 

 

 

SCB’s Capital Reserve Ratio


(Percentage)

Minimum Statutory Capital Reserve Ratio

SCB

 

2017

2020

August 2017

Common Equity Tier 1 (CET1)

5.75

8.00

15.49

Tier 1 Capital

7.25

9.50

15.49

Total CAR

9.75

12.00

17.62