In parallel, the BOT is pushing forward with JV AMCs, or joint-venture asset management companies. The central bank has now issued a formal regulatory framework, with the goal of providing a special tool to help financial institutions manage bad debt in the system more efficiently, acting as a mechanism for banks to offload legacy NPLs.
BOT: 2–3 banks interested in setting up JV AMCs
Vitai Ratanakorn, governor of the BOT, said JV AMCs have attracted strong interest following the central bank’s new notification issued last week. The announcement reopened the door for commercial banks to set up JV AMCs after the previous regulation expired on December 31, 2024, which had prevented interested banks from moving forward for some…