A new government entity, Radanasin Bank, was created in March to participate in the bidding. Finance Minister Tarrin Nimmanhaeminda is reportedly eyeing Radanasin as a vehicle to absorb the doubtful assets of the ailing banks too. But the official line is that bank closures are still not on the cards. There will be no shutdowns, but there may be options like mergers. J.P. Morgan has completed its report, but Bank of Thailand governor Chatumongkol Sonakul says a rescue plan will be announced only in August.
Funding is also an issue.
To its credit, the government is moving on the policy and legal side. Rules governing offshore borrowings have also been tightened. A new bankruptcy law has been passed and a foreclosure bill is going through the legislative mill. Foreigners are now allowed to control local banks, although they cannot increase their stake after 10 years. The Bank of Thailand is being revamped.