Thai finance minister urges banks' recapitalisation

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong encouraged Thai banks to recapitalise to cope with growing loan demand ahead of the activation of the Asean Economic Community in 2015.

"Asean economies are expanding and higher capital fund will ensure leap-frog growth in loans for Thai banks," he said. He understood that banks are reluctant to do so, for fear of short-term dilution effect.

Meanwhile, he also said that the Finance Ministry stands aready to sell its 26 per cent stake in TMB Bank, should any good offer appear. ING Bank is another major shareholder of the bank, holding a 25.19 per cent stake.

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