THE NATIONAL Legislative Assembly has passed a bill establishing a development fund for |the state's special financial institutions.
This means the four state banks - the Bank for Agriculture and Agricultural Cooperatives (BAAC), Government Housing Bank (GHB), Government Savings Bank (GSB), and Islamic Bank of Thailand (I-Bank) - will have to contribute to a fund to help with their own development.
The state banks will have to |provide no more than 1 per cent of their total deposits to this deve-|lopment fund, which is the same proportion that the Bank of Thailand is collecting from the commercial banks for a similar type of fund.
The money collected from the state banks would be used to improve their financial stability while also serving as a reserve for the special financial institutions to use at times when their budgets are under pressure.
Commercial banks currently pay around 0.47 per cent of their total deposits to the BOT to help pay down the debt of the
revival fund, while 0.01 per cent is sent to the Deposit Protection Agency.
As of the end of November, GSB had Bt1.86 trillion in savings deposits, the most out of the four state banks, while the BAAC had Bt1.18 trillion, GHB Bt641 billion and I-Bank Bt110 billion.