On 29 September 2025, Thai CB issued five notifications to finalize consultation tightening substantial shareholding.
- Thai CB has tightened substantial shareholding disclosure and approval rules for more than 5% and 10%, strengthened related-party lending controls, provided conditional relaxations for foreign bank branches, and expanded risk-based supervision to group level.
- Individuals or related parties holding 5% or more of shares in a financial institution or its holding company must report to Thai CB; reporting forms are standardized, with enhanced monitoring mechanisms for timely oversight.
- Substantial shareholding above 10% is prohibited unless approved by Thai CB; permission may be granted to state agencies or entities without intent to control.
- Institutions must verify shareholder registers before meetings or dividend distributions and report results to the regulator.
- FIs are restricted from excessive lending, investment, or transactions benefiting major shareholders or related parties; must establish governance, monitoring frameworks, with exceptions for reduced or cancelled credit lines that do not increase risk.
- Allows foreign bank branches and subsidiaries higher related lending limits to shift risks abroad and permits case-by-case exemptions for existing contracts within legal timelines.
- Risk oversight extended on a consolidated group basis; parent companies, financial or non-financial, must implement controls over related-party transactions of major shareholders; flexibility is granted for non-risk-increasing adjustments.
- The notices were gazetted on 26 September 2025, effective from 27 September 2025.
