Defective Policy Implementation
Early Warning Policy (Directive No. 10/ 2016) was set up to limit adverse consequences of problematic loans to bank before the problem materialized. In practice front business units might omit to identify early warning lists since identification depends heavily on front business unit. For example, Cofco Biochemical (Thailand) Co., Ltd has had negative shareholder equity and DSCR yet it has been overlooked to list in early warning account. This might affect quality loan control.