BANK OF THAILAND 26 March 2013

Transcription

1 Unofficial Translation With courtesy of the Association of International Banks This translation is for the convenience of those unfamiliar with the Thai language. Please refer to the Thai text for the official version BANK OF THAILAND 26 March 2013 To Manager All Commercial Banks No.: ForNorSor. (02)Wor. 28/2556 Re: Submission of the Notification of the Bank of Thailand Re: Regulations on the Undertaking of Commercial Bank Branch Business The Bank of Thailand (BOT) herewith submits the notification of the Bank of Thailand Re: Regulations on the Undertaking of Commercial Bank Branch Business dated 4 March 2013 which was published in the General Edition of the Government Gazette, Volume 130, Special Section 38 Ngor., dated 25 March The key difference between this notification and the previous one is that this notification allows more flexibility for the BOT to permit the scope of general branch s financial services on a case by case basis in order to promote the development of commercial bank services allowing them to be adjusted according to the customers and public s changing need for financial services. Please be informed and comply accordingly. Yours sincerely, (Mr. Somboon Chitphentom) Senior Director, Prudential Policy Department Governor For Attachment: Notification of the Bank of Thailand Re: Regulations on the Undertaking of Commercial Bank Branch Business Prudential Policy Department Tel: , Fax: BOT Notification No 3/2556 (4 September 2017)-check Page 1 of 41

2 - 2 - Unofficial Translation By courtesy of the Association of International Banks This translation is for convenience of those unfamiliar with Thai language. Please refer to the Thai text for the official version The Notification of the Bank of Thailand No. FPG. 3/2556 Re: Regulations on the Undertaking of Commercial Bank Branch Business Reason to issue the Notification At present the financial services needs of the customers and the public have greatly changed. The emphasis is now on convenience and speed. Additionally the technology development and competition are increasingly causing commercial banks services in the recent past to change in order to meet customers needs by emphasizing on effective management of service costs. Currently commercial banks are in the trial process of various types of services prior to further developing them in the future. To promote further development of commercial banks services, the Bank of Thailand revised the regulations on commercial banks branch operations to allow more flexibility and to allow the Bank of Thailand to consider approving on a case by case basis the scope of financial services of general branches which would help commercial banks to gain clarity for their development of various forms of services. 2. Statutory power By virtue of Section 13, Section 37, Section 71, and Section 80 (2) (A) of the Financial Institutions Businesses Act B.E which is a law containing some provisions restricting the rights and liberties of an individual set forth in Section 29 together with Sections 31, 33, 36, 39, 41 and 43 of the Constitution of the Kingdom of Thailand that was endorsed in the enactment of this law, the Bank of Thailand hereby issues regulations on the Undertaking of Commercial Bank Branch Business as prescribed in this Notification. 3. Scope of Application This Notification is applicable to all commercial banks under the law governing financial institutions businesses except in the following cases. BOT Notification No 9/2553 (4 September 2017)-check Page 2 of 37

3 In case of subsidiaries of foreign commercial banks, the establishment of branch offices shall comply with the Notification of the Ministry of Finance Re: Regulations, Procedures, and Conditions on the Applications to Establish Commercial Banks that are Subsidiaries of Foreign Commercial Banks dated 15 November 2011 and the amendments thereafter In case of branches of foreign commercial banks, only Clause 5.4. and Clause 5.5. in this Notification shall be enforced. 4. Repeal of Notifications and Circulars Notification of the Bank of Thailand No.: SorNorSor. 63/2551 Re: Regulations on the Undertaking of Commercial Bank Branch Business dated 3 August 2008 shall be repealed. 5. Contents 5.1. Types of branches and scope of transactions General branches means commercial bank branches that can provide all types of financial services permitted by the Bank of Thailand for each commercial bank to undertake. Commercial banks are allowed to determine whether such general branches will provide full functions or partial functions but they shall provide at least 4 basic financial functions which are deposit taking, withdraw of money, fund transfer, as well as opening and closing of deposit accounts except where the Bank of Thailand approves on a case by case basis for the commercial bank to offer services in other forms. Commercial banks shall put in place channels to clearly notify customers and the public about types of services provided by each general branch Electronic branches means (1) Branches that provide financial services via the use of electronic machines for customers to do self-service banking through the use of electronic machines provided by commercial banks or the suggestions or helps from staffs on the use of such electronic machines only. Electronic branches can provide services only on deposit taking, withdraw of money, fund transfer, payment of goods and services through electronic machines, telebanking, internet banking, or any other services permitted by the Bank of Thailand. (2) Electronic machines that provide financial services and locate outside offices or general branches of commercial banks both in form of standalone machine or a pool of BOT Notification No 9/2553 (4 September 2017)-check Page 3 of 37

4 - 4 - machines such as automatic teller machines (ATM) 1, drop boxes for cash and cheques deposits, passbook update machines, and other electronic machines prescribed by the Bank of Thailand Exchange offices means offices that undertake business related to foreign exchange and other businesses permitted by the Bank of Thailand which are debt payment service, service of taking additional deposits for existing accounts, passbook update service provided by electronic machines, document messenger and information transfer service between customers and other units of the commercial banks, international money transfer both via network of commercial banks or other networks, and domestic fund transfer where transferors and transferees do not have to have accounts with such commercial banks, distribution or provision of other services related electronic money issued by such commercial banks, etc Applications and permissions to establish branches General branches The Bank of Thailand considers permitting commercial banks to establish general branches according to regulations and conditions prescribed by the Bank of Thailand divided into 2 cases as follows: (1) Qualified commercial banks are permitted to annually establish unrestricted number of general branches according to regulations on the consideration of qualified commercial banks (Attachment 1) which shall considered as general permission from the Bank of Thailand. (2) Commercial banks that do not intend to be qualified banks or commercial banks failing the evaluation are able to submit application to establish general branches on a branch by branch basis according to regulations and conditions on permission to establish general branches (Attachment 2) where the Bank of Thailand would consider permitting commercial banks to establish general branches according to reasons and necessity of each case. However, the establishment of general branches in Clause (1) and (2) does not extend to the application to establish overseas representative offices or general branches that provide other forms of services, where commercial banks shall submit application to the Bank of Thailand on a case by case basis. In granting approval for commercial bank to establish a general branch that offers other forms of services, the Bank of Thailand shall take into account the 1 Auto teller machines (ATM) are, for example, cash dispenser machines and cash deposit machines, etc. BOT Notification No 9/2553 (4 September 2017)-check Page 4 of 37

5 - 5 - commercial bank s risk management and internal control system including caring of its customers. These fundamentals must be suitable and correspond to the forms of services for which the commercial bank is applying. Moreover, the Bank of Thailand may add or revise the conditions for the commercial bank to comply with, as it deems appropriate Electronic branches The Bank of Thailand permits in general for commercial banks to establish electronic branches outside their general branches without submission of application, subject to the regulations on establishing electronic branches and the scope of services (Attachment 3) Exchange offices The Bank of Thailand permits in general for commercial banks to set up exchange offices outside general branches of commercial banks without submission of application, subject to the regulations on establishing exchange offices and the scope of services (Attachment 4) Considerations for qualified commercial banks Commercial banks are permitted to submit application to become qualified banks according to regulations on the consideration of qualified commercial banks (Attachment 1). The Bank of Thailand will submit a letter to each commercial bank to inform the result of the consideration. However, if the Bank of Thailand subsequently discovers that any commercial bank fails to meet any one of the qualifying conditions, or has any significant comment on its governance or on compliance, the Bank of Thailand can revoke the rights of such commercial bank at any time. The enforcement shall be immediately on the date that the commercial bank receives the letter notifying the revocation of the rights from the Bank of Thailand Normal operating days and hours and changes of operating days and hours Normal operating day and hours The Bank of Thailand prescribes commercial banks to open and close the operations on the following day and hours. (1) Operating days and hours (1.1) In the Bangkok Metropolitan area, the operating days and hours shall be from Monday to Friday on 9.30 hours to hours. BOT Notification No 9/2553 (4 September 2017)-check Page 5 of 37

6 - 6 - (1.2) In areas other than that in Clause (1.1), the operating days and hours shall be from Monday to Friday on 8.30 hours to hours. (2) Weekly holidays are Saturday and Sunday. (3) Traditional holidays shall be in accordance with that prescribed by the Bank of Thailand. For electronic branches and exchange offices where services are provided outside offices of commercial banks, the Bank of Thailand permits in general commercial banks to determine the operating days and hours. However, commercial banks shall notify the operating days and hours and the closing of the operation in a public area of every branch Changes of operating days and hours (1) Commercial banks are permitted to change operating days and hours for the following cases. (1.1) Opening on holidays or beyond the operating hours prescribed by the Bank of Thailand in Clause (1) may be done without further approval. (1.2) Change of operating hours may be done in the case where the opening and closing times correspond with the opening and closing of their locations e.g. department stores, etc. This shall be deemed as general permission from the Bank of Thailand. (2) Commercial banks must request for permission on a case by case basis for any changes other than those in Clause (1) (1.1) and (1.2). (3) Conditions on the changes of operating days and hours (3.1) For each change of operating days and hours, commercial banks shall notify the customers and the public at least 7 day in advance by announcing in the public area of the offices of such commercial banks and shall continue to operate on such days and hours for not less than 6 months unless commercial banks are permitted from the Bank of Thailand on a case by case basis when appropriate. (3.2) For all changes of operating days and hours, commercial banks shall establish operation plans in order to ensure that there will be no disruption in main operating system of overall financial institutions such as payment system. Additionally commercial banks BOT Notification No 9/2553 (4 September 2017)-check Page 6 of 37

7 - 7 - shall prepare a business continuity plan for such emergencies as lack of liquidity or unexpected withdrawal of deposits due to rumors, etc. (3.3) Commercial banks must communicate with staffs in relevant units about the operation plans for support and remedy upon crisis and shall strictly comply with the said plans upon such events. (3.4) Commercial banks must put in place internal control systems and security measures for the commercial banks and for the safety of the customers. (3.5) Commercial banks must clearly announce operating days and hours as well as transactions provided in a public area of each of their offices. (3.6) Commercial banks must prepare reports summarizing the changes of operating days and hours of general branches of commercial banks on a quarterly basis according to form attached in this Notification (Attachment 5) and shall notify the Bank of Thailand within 15 days from the end of the quarter. If there is no change during the quarter, commercial banks shall indicate in report forms that there is no change Reducing operating days and hours of the last general branch Commercial banks may seek permission from the Bank of Thailand on a case by case basis to reduce the operating days and hours of the last general branch of a district or sub-district in lieu of closing down of the last general branch. Commercial banks must open to provide services at least 2 days a week and determine operation guideline to alleviate difficulties for customers and the public in the area. However, commercial banks must notify days and hours as well as types of transactions that such branch provides at least 30 days in advance before it takes effect. Additionally commercial banks shall indicate names of overseeing general branches or units and communication channels in order for customers to contact in case there are errors or complaints on non-operating days Off-premise operations The Bank of Thailand permits in general for commercial banks to conduct offpremise operations, within and outside of the operating hours, subject to the regulations and scope of off-premise operations of commercial banks (Attachment 6) in order for commercial banks to facilitate their customers off their premises. However, it must not be intended to avoid applying to establish branches or to undertake transactions that are not permitted by the Bank of Thailand. If commercial banks wish to undertake transactions other than those permitted by the Bank of Thailand, they must obtain approval from the Bank of Thailand on a case by case basis. BOT Notification No 9/2553 (4 September 2017)-check Page 7 of 37

8 Branch relocation The Bank of Thailand permits in general for commercial banks to relocate their branches provided that the relocation is in accordance with the following conditions. (1) The branch is relocated to a location within the same area or district, and (2) The existing branch or temporary branch is closed on the same date as the commencement of new branch or permanent branch as the case may be. Commercial banks must notify the Bank of Thailand no less than 15 days in advance before the commencement date and announce the relocation schedule in a public area of such branch. Nonetheless, during the transition, commercial banks must prepare plans to facilitate customers and the public as appropriate Relocation of the head office or for cases other than those specified in Clause , commercial banks shall obtain Bank of Thailand s approval on a case by case basis Temporary ceases of operations and closure of branches Temporary ceases of operations (1) In case of general branches The Bank of Thailand permits in general for commercial banks to temporary cease operation of general branches in the following cases. (1.1) In an emergency or force majeure where the ceases of operations shall not last more than 15 days and commercial banks shall notify the Bank of Thailand immediately after the ceases of operations and shall announce to the customers and the public. (1.2) In a non-emergency but necessary to cease operations and such ceases are not more than 15 days such as shut off electricity by electricity authority, branch refurbishment, etc. (1.3) In the case of general branches that open for services outside the operating days or open for services everyday but wish to close their operations on traditional or national holidays announced by the Bank of Thailand. However, to cease the operations under Clauses (1.2) and (1.3), commercial banks shall inform the Bank of Thailand in advance and announce to notify customers and the public in advance. BOT Notification No 9/2553 (4 September 2017)-check Page 8 of 37

9 - 9 - (2) In case of electronic branches and exchange offices The Bank of Thailand grants general permission for commercial banks to be able to temporary cease operation of electronic branches and exchange offices. However, the ceases of operations shall last not more than 90 days and commercial banks shall announce date and time of the temporary ceased operations in a public area around the locations of such electronic branches or exchange offices. Commercial banks shall also determine procedures to facilitate their customers and the public so that they could receive services from other branch offices or other service channels as appropriate Branch closure (1) Closure of general branches Commercial banks intended to close general branches shall submit applications to the Bank of Thailand according to the regulations on closure of general branches of commercial banks (Attachment 7) and shall propose closure plans not less than 60 days in advance before stopping the operations and shall notify customers not less than 30 days in advance before stopping the operations. If commercial banks do not receive any objections from the Bank of Thailand within 30 days from the date that the Bank of Thailand receives all applications and supported documents, commercial banks shall proceed on the closure of such general branches as planned. (2) Closure of electronic branches or exchange offices Commercial banks intended to permanently close electronic branches or exchange offices shall inform the Bank of Thailand not less than 15 days in advance before stopping the operations Purchases or holdings of immovable properties To purchase or hold immovable properties to be used as offices for undertaking business of general branches, electronic branches, and exchange offices; commercial banks shall not only comply with regulations on the establishment of each types of branches mentioned above, but shall also strictly comply with Notification of the Bank of Thailand Re: Regulations on the Purchases or Holdings of Immovable Properties Used as Offices for the Undertaking of Businesses or for Employees or Staffs of Commercial Banks and the amendments thereafter, and other related regulations. 6. Effective Date BOT Notification No 9/2553 (4 September 2017)-check Page 9 of 37

10 This Notification shall come into force from the date following the announcement on Government Gazette onward. Notified on 4 March 2013 (Mr. Prasarn Trairatvorakul) Governor The Bank of Thailand Disclaimer: The Association of International Banks, its directors, members and employees take no responsibility, accept no liability from any use or misuse of the information in these pages and do not attest to the correctness of the translation, if any. This translation contains privileged information. It is intended for the named recipients only. No portion of this translation may be transmitted by any means without prior written permission from the Association of International Banks. All rights reserved. BOT Notification No 9/2553 (4 September 2017)-check Page 10 of 37

11 - 1/1 - Attachment 1 Regulations on the Consideration of Qualified Commercial Banks Eligible Applicants All locally incorporated commercial banks (commercial banks) except commercial banks that are subsidiaries of foreign commercial banks. 2. Period of Consideration and Schedule on Applications Submission 2.1. The Bank of Thailand will consider applications to determine qualified commercial banks only once a year. Commercial banks intended to be evaluated shall submit a letter of intent within October. The Bank of Thailand will then issue a letter to inform the result of the consideration to the commercial bank within November Commercial banks failed to pass the evaluation of the Bank of Thailand are able to re-submit letter of intent for evaluation within October of the following year. 3. Consideration for Qualified Commercial Banks The Bank of Thailand will consider qualification of a commercial bank according to the following rules The commercial bank has a strong financial position and performance. It receives a composite rating of not less than level 3 from the latest examination of the Bank of Thailand prior to the date that the commercial bank submits a letter of intent for the evaluation, and there is no material comment on governance and on compliance with the Bank of Thailand s instructions The commercial bank maintains a ratio of capital to risk-weighted assets (BIS ratio) at the end of the day as prescribed by the Bank of Thailand from the date that the commercial bank submits application of not less than 12 percent. The Bank of Thailand may prescribe additional conditions as appropriate. 4. Conditions to Establish General Branches of Qualified Commercial Banks

12 - 1/2 - Qualified commercial banks are permitted to set up any number of general branches in each year as it is deemed as having received the Bank of Thailand s general approval. To establish general branches, commercial banks shall comply with the following regulations Submission of annual plan to establish general branches Commercial banks shall submit an annual plan for establishing general branches to the Bank of Thailand within January. Such plan shall have at least the following details. (1) Summary of operating performances of existing general branches in operation, classified into 6 groups which are Bangkok (excluding head offices), Metropolitan area (Pathumthani, Nonthaburi, Nakonpathom, Samutprakarn, and Samutsakorn), Central region, Northern region, Southern region, and Northeastern region. The report shall be separated into 2 groups, profitable branches and non-profitable branches. (2) Details of branches that are permitted (according to previous regulations) but are not yet opened by indicating number of branches, reasons for not proceeding with the plan, and forward plans. (3) Details of general branches to be set up annually by indicating establishing order and locations such as districts or zone (in case of Bangkok) and planned timeline. However, commercial banks are able to submit applications to the Bank of Thailand to revise the annual plan to establish general branches at any time For the submission of annual plan to establish general branches from the second year onwards, such annual plan shall have at least the following details in addition to those prescribed in Clause 4.1. (1) Details of general branches according to the previous year annual plan but are not yet opened by indicating number of branches, reasons of not proceeding with the plan, and forward plans. (2) Reports on immovable properties purchased or rented by commercial banks to be used as offices for general branches but are not yet opened by indicating types, locations, book value, and acquisition date or rental agreement date Holdings of immovable properties used as offices for general branches (1) The Bank of Thailand permits commercial banks to purchase or hold immovable properties to be used as offices for general branches after the Bank of Thailand submits letter to inform result of the consideration to qualified commercial banks. However,

13 - 1/3 - in the purchases or rentals of such immovable properties, commercial banks shall consider with due care by taking into account various relevant factors. (2) In the case that a commercial bank has already purchased or holds immovable properties to be used as offices for general branches but it is unable to set up such branches within 1 year after the purchasing date or rental date of such immovable properties, it is able to re-submit a establishment plan for such general branches in the next year. In the case that a commercial bank is again unable to open such branches, it shall strictly comply with Notification of the Bank of Thailand Re: Regulations on the Purchases or Holdings of Immovable Properties Used as Offices for the Undertaking of Businesses or for Employees or Staffs of Commercial Banks and the amendments thereafter, and other related regulations Commercial banks shall inform the Bank of Thailand of the opening of a general branch by indicating the name of branch, branch code, location, and the commencement date of the operation no less than 15 days in advance before the commencement date. 5. Revocations of Rights 5.1. The Bank of Thailand can revoke the right to be a qualified commercial bank if subsequently it is discovered that the commercial bank fails to meet one of the qualifying conditions, or has material comments on governance or on compliance. The enforcement shall take effects immediately on the date that the commercial bank receives the notification letter from the Bank of Thailand In the case that the commercial bank has already submitted a letter informed about a schedule to set up any general branches to the Bank of Thailand in advance before the revocations of rights, the commercial bank is permitted to set up such general branches as informed. For general branches that the commercial bank indicated in the annual plan for the establishment of general branches but has not yet submit a letter to inform about locations and schedule to open the operations, the Bank of Thailand will consider granting permissions on a case by case basis depending on reasons and necessity. However, commercial banks whose rights are revoked are able to submit applications for the establishment of branches on a case by case basis according to regulations and conditions on the establishment of general branches (Attachment 2) Commercial banks whose rights are revoked are able to re-submit letters of intent for the evaluation according to consideration period within October each year

14 - 2/1 - Regulations and Conditions on Permission to Establish General Branches Attachment 2 1. Eligible Applicants All locally incorporated commercial banks (commercial banks) except commercial banks that are subsidiaries of foreign commercial banks. 2. Period of Consideration and Schedule on Applications Submission The Bank of Thailand will consider applications for the establishment of general branches twice a year. Commercial banks shall submit applications to establish general branches within the end of June and December. 3. Applications to Establish General Branches Applications to establish general branches shall compose of branch establishment plan with at least the following significant details Summary of operation performances of existing opened general branches classified into 6 groups which are Bangkok (excluding head offices), Metropolitan area (Pathumthani, Nonthaburi, Nakonpathom, Samutprakarn, and Samutsakorn), Central region, Northern region, Southern region, and Northeastern region. The report shall be separated into 2 groups, profitable branches and non-profitable branches Details of general branches that are permitted to set up but are not yet opened for operations by indicating number of branches, reasons of not proceeding with the opening, and forward plans Details of applying general branches by indicating order, locations (specifying districts or zone in case of Bangkok), reasons, and planned timeline including financial forecasts of each branch with clear supplementary data. In this regard, the Bank of Thailand could request for additional information or data for consideration as appropriate. 4. Consideration Factorsand Guidelines on the Permissions

15 - 2/2 - The Bank of Thailand will consider permissions for commercial banks to set up general branches according to reasons and necessity on a case by case basis by taking into account the following factors of commercial banks Financial positions and managements namely capital adequacy, quality of assets, management capability, earning capability, liquidity, and risk management capability, etc Governance system namely structures and compositions of committees and subcommittees, qualification of directors and top level management, and compliance with laws, rules, and regulations, etc Appropriateness and feasibility of the plans on the establishment of general branches of commercial banks For applications to establish the first branch of such commercial bank in any district, the Bank of Thailand will grant priority on the consideration of such applications. For the establishment of general branches outside Bangkok area, Muang districts, and major districts where the names are listed in this Notification and the amendments thereafter, commercial banks need not submit applications but must submit expression of intention to the Bank of Thailand. In this regard, such submission shall be done concurrently with the submission of applications to set up general braches in other areas. If the Bank of Thailand does not indicate any objections within 60 days from the end date of application period, commercial banks shall proceed with their plans. 5. Conditions on the Establishment of General Branches To permit commercial banks to set up general branches, the Bank of Thailand requires commercial banks to comply with the following regulations Commercial banks shall have clear and visible signage indicating that they are branches Commercial banks shall open general branches in approved areas and shall open their operations within 2 years after permission date of the Bank of Thailand except, the Bank of Thailand shall broaden the area or grant an extension Commercial banks shall notify the opening of general branch by indicating branch name, branch code, location, and schedule of the opening date to the Bank of Thailand no less than 15 days in advance before the date that the general branch commences its operations.

16 - 2/ The Bank of Thailand permits in general for commercial banks to purchase or hold immovable properties to be used as offices for general branches after commercial banks are permitted to set up general branches from the Bank of Thailand. However, in the purchases or holdings of such immovable properties, commercial banks shall consider with due care by taking into account various relevant factors. However, should a commercial bank cancels the plan to set up of any general branches that have been granted a permission, it shall strictly comply with Notification of the Bank of Thailand Re: Regulations on the Purchases or Holdings of Immovable Properties Used as Offices for the Undertaking of Businesses or for Employees or Staffs of Commercial Banks and the amendments thereafter, and other related regulations

17 - 2/4 - Lists of Major Districts No. Name of District Name of Province 1. Muang Nonthaburi Nonthaburi 2. Pakkret Nonthaburi 3.* Muang Pathumthani Pathumthani 4. Klongluang Pathumthani 5. Thanyaburi Pathumthani 6. Lamlookka Pathumthani 7. Muang Pranakornsriayudhaya Pranakornsriayudhaya 8. Muang Lopburi Lopburi 9. Muang Saraburi Saraburi 10. Muang Chantaburi Chantaburi 11. Muang Chachungsao Chachungsao 12. Muang Chonburi Chonburi 13.* Banglamung Chonburi 14. Sriracha Chonburi 15. Muang Pattaya Chonburi 16. Muang Rayong Rayong 17. Muang Samutprakarn Samutprakarn 18. Bangpli Samutprakarn 19. Prapadang Samutprakarn 20. Muang Nakornratchasrima Nakornratchasrima 21. Muang Ubonrachathani Ubonrachathani 22. Muang Khonkean Khonkean 23. Muang Sakonnakorn Sakonnakorn 24. Muang Udornthani Udornthani 25. Muang Chiangrai Chiangrai 26. Muang Chiangmai Chiangmai 27. Muang Lampang Lampang

18 - 2/5-28. Muang Nakornsawan Nakornsawan 29. Muang Pitsanuloke Pitsanuloke 30. Muang Nakornpathom Nakornpathom 31. Sampran Nakornpathom 32.* Huahin Prachubkirikhan 33. Muang Petchaburi Petchaburi 34. Muang Ratchaburi Ratchaburi 35. Muang Samutsakorn Samutsakorn 36. Kratumban Samutsakorn 37. Muang Supanburi Supanburi 38. Muang Krabi Krabi 39. Muang Chumporn Chumporn 40. Muang Nakornsrithammarat Nakornsrithammarat 41. Muang Phuket Phuket 42.* Kratu Phuket 43. Muang Suratthani Suratthani 44. Koh Samui Suratthani 45. Muang Songkla Songkla 46. Hatyai Songkla * Name of districts additionally announced The Bank of Thailand 10 March 2005

19 - 3/1 - Attachment 3 Regulations on the Establishing Electronic Branches and the Scope of Services Eligible Entities All locally incorporated commercial banks (commercial banks), however, an electronic branch shall be considered as one branch. 2. Conditions on the Establishing Electronic Branches The Bank of Thailand permits in general for commercial banks to establish electronic branches outside general branches of commercial banks without re-seeking for permission, subject to the following conditions Commercial banks shall prepare reports summarizing number of electronic branches and number of electronic machines classified by regions and locations on a quarterly basis which shall be divided into 6 groups namely Bangkok, Metropolitan area (Pathumthani, Nonthaburi, Nakonpathom, Samutprakarn, and Samutsakorn), Central region, Northern region, Southern region, and Northeastern region according to report forms attached in this Notification and notify the Bank of Thailand within 15 days after the end of the quarter. If there is no change in a certain quarter, commercial banks shall indicate in report forms that there is no change. The details of the establishment and scope of services of electronic branches shall be kept at commercial banks for the Bank of Thailand s examination upon request. In this regards, commercial banks must have information about locations of offices of electronic branches, names of electronic branches (in case of full functions), oversight units or branches, and of commencement date, operating days and hours, and closedown date which shall be kept at commercial banks for the Bank of Thailand s examination upon request Electronic machines used for providing financial services that are located outside general branches of such commercial banks are considered by laws as being branches of commercial banks; thus, they are subject to the notification of the Bank of Thailand regarding operating days and hours prescribed under the Financial Institutions Businesses Act.

20 - 3/ Commercial banks must arrange a separate area from the area of general branches of commercial banks for locating electronic machines that provide financial services during non-business hours Commercial banks must arrange to have signage indicating bank s name, branch name (in case of full function), name of oversight general branch or unit including posting operating days and hours of the electronic branch or electronic machines used in providing financial services in clearly visible area at the location of such electronic branch or in the area which the electronic machines are installed Commercial banks must put in place internal control systems and security systems to safeguard the customers and properties of such commercial banks as appropriate according to operational standards of such commercial banks Commercial banks must conduct risk assessment and examine operations of information processing by computers, systems that process information using computers, and losses or weaknesses from internal controls on computers. Commercial banks shall determine the timing and scope of examination as appropriate. A copy of examination reports as well as related orders and suggestions shall be submitted to the Risk Management and Information Technology Examination Department, Supervision Group, Bank of Thailand upon every examination and within 45 days from the date that the examination report is made to the audit committees or management whichever is earlier As electronic branches are self-service banking where customers shall undertake financial transactions by themselves through the uses of electronic machines, commercial banks shall put in place processes to receive complaints in of case errors in financial services provided through electronic machines such as notifying branches that are responsible for overseeing the electronic branches and posting telephone numbers in the service area as well as measures to rectify the errors The Bank of Thailand permits commercial banks to purchase or hold immovable properties to be used as the aforementioned electronic branches. However, commercial banks must consider appropriate capital investments per each branch office. For existing immovable properties which are previously used in business operations or for employees or staffs of commercial banks but are already moved, ceased, canceled the opening of or closed down branch offices, or no longer in use, if commercial banks would like to use such immovable properties as electronic branches, commercial banks shall consider the feasibility of the business and must not intend to avoid disposing the immovable properties. 3. Provisions of Financial Services through Electronic Machines

21 - 3/ Electronic machines used in providing financial services compose of electronic machines used for taking deposits, withdrawing, fund transfer, paying for goods or services, enquiring of balance, updating passbooks, cheques depositing, or other services permitted by the Bank of Thailand In providing financial services through electronic machines, commercial banks must strictly comply with regulations of the Bank of Thailand such as Notification of the Bank of Thailand Re: Permission for Commercial Banks to Provide Electronic Financial Services and the amendments thereafter, Practical Guideline on Anti-Money Laundering and Combating the Financing of Terrorism (AML / CFT), and other related regulations. 4. Operating Days and Hours The Bank of Thailand permits in general for commercial banks to open electronic branches on days and hours as they wish and to temporary cease the operations if not more than 90 days without seeking for permission. However, commercial banks shall post the announcement of the operating days and hours or non-operating days visibly in the public area at the locations of such electronic branches or in the areas that such electronic machines are installed. 5. Closing Down of Electronic Branches 5.1. Commercial banks intended to permanently close down electronic branches shall notify the Bank of Thailand not less than 15 days in advance before the closure In the relocating or closing down such electronic branches, commercial banks shall strictly comply with Notification of the Bank of Thailand Re: Regulations on the Purchases or Holdings of Immovable Properties Used as Offices for the Undertaking of Businesses or for Employees or Staffs of Commercial Banks and the amendments thereafter, and other related regulations

22 - 3/4 - Bank Public Company Limited Summary Report on Number of Electronic Branches and Number of Electronic Machines Classified by Region For the Quarter ended on Attachment 3 Branches Bangkok Metropolitan Central Region Northern Region Southern Region Northeastern Total 1. Number of electronic branches 1.1. Full function Branches that have only ATMs Total 2. Number of electronic machines 2.1. ATM 2 In general branch offices In full function electronic branch offices In exchange offices Outside offices Mobile vehicles (cars) 2.2. Other electronic machines 3 (specified by type) Total Note: 1. Full function electronic branches mean branches that provide services by various types of electronic machines such as electronic machines used for deposits taking and withdrawal, phone banking / telebanking, internet banking 2. Automatic Teller Machines (ATM) are, for example, cash dispenser machines, cash deposits machines, etc. but excluding drop boxes and passbook update machines 3. Other electronic machines mean electronic machines other than those specified under Clause If there is no change in a certain quarter, please indicate no change

23 - 4/1 - Attachment 4 Regulations on the Establishing Exchange Branches and the Scope of Services Eligible Entities All locally incorporated commercial banks (commercial banks), however, an exchange office shall be considered as one branch. 2. Conditions on the Establishing Exchange Offices The Bank of Thailand permits in general for commercial banks to set up exchange offices outside general branches of commercial banks and open the exchange operations within the general branches of commercial banks during off-operating hours without re-seeking for permission. In this regard, exchange offices shall include standalone automatic exchange machines. Commercial banks establishing exchange offices shall be subject to the following conditions Commercial banks shall prepare reports summarizing number of exchange offices on a quarterly basis according to report forms attached in this Notification and notify the Bank of Thailand within 15 days after the end of the quarter. If there is no change in a certain quarter, commercial banks shall indicate in report forms marking no change. But the details of the establishment, opening date of the operation, locations, and scope of services of exchange offices shall be kept at commercial banks for the Bank of Thailand s examination upon request Exchange offices are considered by laws as being branches of commercial banks; thus, they are subject to the notification of the Bank of Thailand regarding operating days and hours prescribed under the Financial Institutions Businesses Act Commercial banks must arrange for distinctly separate service area of exchange offices located within general branches of commercial banks and that are open during offoperating hours of the commercial banks Exchange offices that are set up must undertake businesses related to foreign exchanges as follow: (1) Buying, selling, or exchanging foreign currency notes, foreign currency bank notes, and foreign currency coins;

24 - 4/2 - (2) Buying or selling drafts, traveler s cheques payable in foreign currencies; (3) Paying money, foreign currency notes, foreign currency coins, or traveler s cheques payable in foreign currencies to international credit card holders in exchanging for the rights to be reimbursed from such persons; (4) Other businesses permitted by the Bank of Thailand Commercial banks must strictly comply with Exchange Control Act B.E and orders as well as related Notifications of Ministry of Finance and the Bank of Thailand, which are Exchange Control Measures, Measure on Anti-Money Laundering and Combating the Financing of Terrorism (AML / CFT) and other related regulations In purchasing or selling, purchasing rate shall not be less than and selling rate shall not be more than buy rate or sell rate of head offices. Additionally signage announcing exchange rates shall be posted in public area Commercial banks must arrange to have signage indicated the following statement: Currency Exchange Service Bank Commercial banks shall also announce operating days and hours in a public area of such exchange offices The Bank of Thailand permits commercial banks to purchase or hold immovable properties to be used as the aforementioned exchange offices. However, commercial banks shall consider appropriate capital investments per each office. For existing immovable properties which are previously used in business operations or for employees or staffs of commercial banks but are already moved, ceased, canceled the opening of or closed down branch offices, or not anymore in use, if commercial banks would like to use such immovable properties as exchange offices, commercial banks shall consider the feasibility of the business and must not intend to avoid disposing the immovable properties Commercial banks intended to permanently use vehicles as offices for exchange transactions shall determine specific parking locations and shall have visible and clear signage indicating names of offices, and operating days and hours at the parking locations. Commercial banks must also set sufficient security measures to safeguard the customers and their own properties. 3. Other Businesses Permitted by the Bank of Thailand

25 - 4/3 - The Bank of Thailand permits in general for exchange offices to undertake other businesses as follow: 3.1. Debt payment service both of such commercial banks and any persons in form of cash or cheques. However, if the services are provided as debt payment agents for any persons with any charges, commercial banks shall strictly comply with Notification of the Bank of Thailand Re: Permission for Commercial Banks to Undertake Support Business and Other Businesses and the amendments thereafter Taking deposits for existing accounts of such commercial banks and other financial institutions. However, if the services are provided as deposit taking agents for other financial institutions, commercial banks shall strictly comply with Notification of the Bank of Thailand Re: Regulations and Conditions on Outsourcing in Undertaking Businesses of Financial Institutions and the amendments thereafter Passbook updating service Document messenger and information transfer service between customers and other units of commercial banks International fund transfer both via network of commercial banks or other networks Domestic fund transfer where transferors and transferees do not need to have accounts with such commercial banks. However, exchange offices are not able to provide services on withdrawal of deposits, debit accounts, or transfer money from accounts of customers. Commercial banks shall strictly comply with Regulations on the Provision of Service on Electronic Money Transfer and shall also strictly comply with Guideline on Security Measures on the Provision of Electronic Financial Services and the amendments thereafter Exchange offices of commercial banks authorized to provide electronic money services are able to sell or provide other services related to electronic money cards issued by such commercial banks and other commercial banks that are authorized to provide electronic money services. However, commercial banks must strictly comply with regulations on the provision of electronic money services and the amendments thereafter. In this regard, commercial banks must set clear policies and operational guideline about service previsions of exchange offices and shall put in place internal control systems, security systems for properties of such commercial banks, and risk management systems as appropriate according to operational standards of such commercial banks. Commercial banks

26 - 4/4 - must also inform the scope and limitation of services provided by exchange offices to their customers. 4. Operating Days and Hours The Bank of Thailand permits in general for commercial banks to determine the operating days and hours of their exchange offices and to temporary cease the operations if not more than 90 days without seeking for permission. However, commercial banks must clearly post an announcement of the operating days and hours or non-operating days in a public area at the locations of such exchange offices. 5. Closure of Exchange Offices 5.1. Commercial banks intended to permanently close down exchange offices shall notify the Bank of Thailand not less than 15 days in advance before closure In relocating or closing down such exchange offices, commercial banks shall strictly comply with Notification of the Bank of Thailand Re: Regulations on the Purchases or Holdings of Immovable Properties Used as Offices for the Undertaking of Businesses or for Employees or Staffs of Commercial Banks and the amendments thereafter, and other related regulations

27 - 4/5 - Attachment 4 Bank Public Company Limited Summary Report on Number of Exchange Offices For the Quarter ended on Number of Exchange Offices Within Offices Outside Offices Mobile Cars Total Beginning balance Established during the quarter Closure during the quarter Ending balance Note: 1. Report only exchange offices that are established/ or closed down excluding number of offices that temporary cease operations. 2. If there is no change in a certain quarter, please indicate no change.