Bank: Upcoming change in risk weighting rule.

(From Thai Press Reports)

Section: Economy - The introduction of lower risk weight for retail loans will have positive impact to banks' RWA and provide extra cushion on capital base. Many banks already have high T-1 and CAR to pursue double-digit loan growth without compromising its capital base. The extra capital cushion will provide them more room to cope with antagonizing events in future. Other than the changing status of finance companies according to the Financial Master Plan guidelines, the central bank is also considering the introduction of lower risk weighting for retail loans for all financial institutions. The lower risk weights comply with the Basel II …