KASIKORNBANK Strategic Acquisition slide image

KASIKORNBANK Strategic Acquisition

K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK BOT Consultation Paper: Repositioning Thailand's Financial Sector Digital Technology Leveraging on Technology and Data to Drive Innovation 3 Opens: - Open Competition - Open Infrastructure - Open Data Thai banks have been ready for more open competition, based on a level playing field approach. • • Sustainability Managing Transition towards Sustainability Setting up data standard & disclosure requirements for financial institution's environment-related activities Tackling Thai households' indebtedness via both demand (consumers) and supply (loan providers) sides ✓ Many initiatives, including open infrastructure and open data, require amendments of laws and regulations, as well as cooperation from other authorities. ✓ More precise impact assessment is pending a clearer plan and details of the paper. Source: BOT Consultation Paper, KResearch • • . Resiliency Shifting from Stability to Resiliency Players will be regulated in accordance with their risk profiles (risk proportionality) Burdensome regulations will be revised for greater flexibility While the BOT does not wish to see digital assets adopted as Means of Payment, it does not rule out those with proven stability and economic value Nonbank Financial Institutions will be evaluated and regulated according to their size and impact on the economy & financial system บริการทุกระดับประทับใจ ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK K KASIKORNTHAI Basel III: BOT Minimum Capital Requirement Transitional Arrangement for Capital Requirement 133 All dates are as of 1 January Conservation Buffer* D-SIBS Buffer** CET1: Min. Common Equity Tier 1 Ratio (after conservation buffer and D-SIBS buffer) Tier 1: Min. Tier 1 Ratio (after conservation buffer and D-SIBS buffer) 6.625% (6.0%+0.625%) 7.25% (6.0%+1.25%) 7.875% (6.0%+1.875%) 9.0% (6.0%+2.5% +0.5%) 2016 2017 2018 2019 2020 2021 2022 2023 0.625% 1.25% 1.875% 2.5% 2.5% 2.5% 2.5% 2.5% 0.5% 1.0% 1.0% 1.0% 1.0% 5.125% (4.5%+0.625%) 5.75% (4.5%+1.25%) 6.375% (4.5%+1.875%) 7.5% 8.0% 8.0% 8.0% (4.5% +2.5%+0.5%) (4.5%+2.5% +1%) (4.5% +2.5% +1%) (4.5%+2.5% +1%) 8.0% (4.5%+2.5% +1%) 9.5% (6.0%+2.5% +1%) 9.5% (6.0% +2.5% +1%) 9.5% (6.0%+2.5% +1%) 9.5% (6.0%+2.5% +1%) CAR: Min. Total Capital Ratio (after conservation buffer and D-SIBS buffer) 9.125% (8.5%+0.625%) 9.75% 10.375% (8.5%+1.25%) (8.5%+1.875%) 11.5% (8.5% +2.5% +0.5%) 12.0% (8.5%+2.5% +1%) 12.0% (8.5% +2.5% +1%) Countercyclical Buffer (Subject to the BOT consideration)*** 0.0-2.5% 12.0% (8.5%+2.5% +1%) 12.0% (8.5%+2.5% +1%) 0.0-2.5% Leverage Ratio Parallel run period (Tier 1/Exposure) ≥ 3% Effective in 2023 (Tentative) Liquidity Coverage Ratio (LCR)**** Effective (Phase-in) (Liquid Assets/Net Cash Outflows within 30 days) ≥ 100% LCR ≥ 60% LCR ≥ 70% LCR ≥ 80% Effective in Jul-18 LCR ≥ 90% LCR ≥100% LCR ≥100% LCR≥ 100% LCR ≥ 100% Net Stable Funding Ratio (NSFR) (Available Stable Funding / Required Stable Funding) ≥ 100% NSFR ≥ 100% NSFR≥ 100% NSFR≥ 100% NSFR ≥ 100% NSFR ≥ 100% NSFR ≥ 100% Note: * Conservation Buffer is to ensure adequate capital to absorb losses during periods of financial and economic stress ** D-SIBS (Domestic Systemically Important Banks) Buffer is to limit negative impact associated with the distress or failure of banks on domestic financial system and economy *** In periods of excess aggregate credit growth, BOT may require banks to set a Countercyclical Buffer up to 2.5% to achieve the broader macro-prudential goal of protecting the banking sector **** KBank's Average Liquidity Coverage Ratio (LCR) are 174%, 158% and 161% as of December 2021, June 2021 and December 2020, respectively; more details can be found on Basel III Pillar 3 Disclosures Report Remark: Banks with a capital ratio less than the required regulatory buffers will face various degrees of constraint on earning distribution Source: The Bank of Thailand บริการทุกระดับประทับใจ 134
View entire presentation