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Banks need more funds to meet rules: Basel II calls for higher reserves.

Bangkok Post (Bangkok, Thailand)

| December 08, 2005 | COPYRIGHT 2005 Bangkok Post. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Krissana Parnsoonthorn

Dec. 8--Local banks will likely have to raise more capital over the next two years to meet the requirements of the new Basel II capital-adequacy framework, according to Chanita Saicheua, a partner at PricewaterhouseCoopers.

The additional capital would be used to cover operational risks, which will require banks to set 15 percent of their gross income as "basic indicator" coverage.

"The expected new round of bank recapitalisation will not be as big as when they were forced to recapitalise after the 1997 financial crisis. Given current healthy performances, all banks are confident that they could boost their ...

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