ID :
122706
Tue, 05/18/2010 - 11:33
Auther :
Shortlink :
http://m.oananews.org//node/122706
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Thai central bank: Instruction to freeze 106 Thaksin-, Reds-related accounts legally justified
BANGKOK, May 18 (TNA) – Instructions from the Centre for Resolution of the Emergency Situation (CRES) that financial institutions freeze 106 corporate and personal accounts as a measure to cut support for the Red Shirt protesters are legally justified, according to the Bank of Thailand (BoT).
“By virtue of Section 11 of the Emergency Decree, the CRES has authority to freeze the 106 accounts, so financial institutions need not seek prior approval from the central bank or report to it first,” BoT Deputy Governor Krirk Vanikkul said.
Asked whether the central bank had examined and found anything wrong with transactions such as transfers or withdrawals in the accounts prior to the CRES instruction, he said it was difficult to say because the bank had no duty to go through individual accounts.
Instead, the bank would pay attention to assessing the overall economy and the stability of financial institutions.
Mr Krirk said the BoT will monitor impacts of the current political rally on the financial institution system day by day because the situation had changed rather rapidly.
He believed the existing regulations supervising the banking system under the current unusual situation is sufficient to ensure smooth transactions by financial institutions and a plan to look after the safety of employees and properties.
However, he allowed that the ongoing political violence would somewhat affect transactions in the financial institution system in the short run, but it had not yet impacted the stability of financial institutions.
“If commercial banks believe some offices, branches or employees are in violence-prone areas [and at risk], they are free to consider allowing them to cease providing services immediately without the need to inform the central bank first. (TNA)
“By virtue of Section 11 of the Emergency Decree, the CRES has authority to freeze the 106 accounts, so financial institutions need not seek prior approval from the central bank or report to it first,” BoT Deputy Governor Krirk Vanikkul said.
Asked whether the central bank had examined and found anything wrong with transactions such as transfers or withdrawals in the accounts prior to the CRES instruction, he said it was difficult to say because the bank had no duty to go through individual accounts.
Instead, the bank would pay attention to assessing the overall economy and the stability of financial institutions.
Mr Krirk said the BoT will monitor impacts of the current political rally on the financial institution system day by day because the situation had changed rather rapidly.
He believed the existing regulations supervising the banking system under the current unusual situation is sufficient to ensure smooth transactions by financial institutions and a plan to look after the safety of employees and properties.
However, he allowed that the ongoing political violence would somewhat affect transactions in the financial institution system in the short run, but it had not yet impacted the stability of financial institutions.
“If commercial banks believe some offices, branches or employees are in violence-prone areas [and at risk], they are free to consider allowing them to cease providing services immediately without the need to inform the central bank first. (TNA)
