BOX 5 : EVALUATION CRITERIA FOR APPLICATIONS
The evaluation of financial institutions seeking new license contains two parts
– Part I concerns the assessment of the financial institution’s eligibility to apply for
commercial bank license, and Part II entails the assessment of the financial
institution’s business plan upon receiving the commercial bank license in order to
gauge the readiness of the financial institution to become a commercial bank.
Part I. Assessment of the Financial Institution’s Eligibility
Apart from the quantitative criteria such as BIS ratio, NPA, and provisioning,
the eligibility of applicants further depends upon the evaluation of the following
qualitative criteria.
Part 1: Compliance to Corporate Governance Guidelines
• Assess whether or not the behavior of financial institutions contradicts with
corporate governance guidelines issued by the Bank of Thailand – performed
together with evaluation of other corporate governance factors in Part 2.)
• Assess that there are no change of major shareholder(s).
Part 2: Evaluation of Management Quality
• Role of board of directors, shareholders, and senior management starting from
level of director.
• Behavior of directors and senior management starting from level of director
• Risk management
• High risk business operations
• Organizational structure
• Internal control and audit
• Compliance with important regulations
• Compliance and cooperation with official policy
Part II. Assessment of the Financial Institution’s Business Plan
Part 1: Fit and Proper of Management and Shareholders
• Directors and management
• Shareholder structure
Part 2: Assessment of Business Plan
• Business plan
• Organizational structure and management
• Business continuity plan