The Thai Ministry of Finance is prepared to gain immediate government approval for a plan to establish Asset Management Companies (AMCs) by major commercial banks, aiming to address the country’s ongoing high household debt levels.
The initiative, which has completed its preparatory phase, seeks to transfer non-performing loans (NPLs) to these dedicated AMCs. This move is intended to help banks clean up their balance sheets and enhance their capacity to lend—thereby supporting economic revitalization.
Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, confirmed that the scheme is ready for implementation pending final government approval. “We are awaiting clear directives from the government,” he said. “Operational procedures, rules, and conditions are nearly finalized. Once the government reviews and approves it, we can proceed immediately.”
The plan has received strong support from the Thai Bankers’ Association (TBA) and benefits from the Bank of Thailand’s (BOT) recent relaxation of key regulations that previously hindered the establishment of such firms.
Lavaron highlighted that the plan was extensively discussed during Prime Minister Anutin Charnvirakul’s recent meeting with the TBA, emphasizing widespread political and industry backing.
“I believe this approach will move forward because it is advantageous,” he stated. “Much of the work—methodology, strategy, and solutions—are already in place. All that remains is for the government to give the go-ahead to implement it.”
The Ministry of Finance views this initiative as a way to relieve financial institutions of their NPL burdens, enabling them to better manage their balance sheets, free up capital, and leverage their expertise. This, in turn, is expected to allow banks to serve as key drivers of economic growth through more effective credit provision.