Thailand: Financial System Stability Assessment
IMF Staff Country Reports, October 7, 2019
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- Thailand: Financial System Stability Assessment
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Bibliographic details
- Published: October 7, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513516486.002
Overview and key findings
- Assets of the insurance and mutual fund sectors have doubled as a share of gross domestic product over the last decade.
- Capital markets are largely on par with regional peers.
- Stress tests results suggest that the banking sector is resilient to severe shocks and that systemic and contagion risks stemming from interlinkages are limited.
- Financial system oversight is generally strong.
Risks and scenarios
- The report discusses that a significant slowdown in China and advanced economies, a sharp rise in risk premia, and entrenched low inflation would adversely impact the financial system.
Policy analysis and recommendations
- The operational independence of supervisory agencies can be strengthened further.
- The operational independence of supervisory agencies can be strengthened further by reducing the involvement of the Ministry of Finance in prudential issues and ensuring that each agency has full control over decisions that lie within its areas of responsibility.
Subject coverage and keywords
- Subject: Banking, Commercial banks, Financial institutions, Financial sector policy and analysis, Financial sector stability, International trade, Liquidity stress testing, Macroprudential policy instruments, Trade balance
- Keywords: asset quality, bank, bank distress, bank resolvability assessment, cash flow, Commercial banks, CR, Financial sector stability, financial system, Global, headline inflation, hurdle rate, ISCR, Liquidity stress testing, Macroprudential policy instruments, recovery plan, resolution planning, Trade balance, U.S. dollar
Content in this bundle
- Thailand: Financial System Stability Assessment; IMF Country Report No. 19/308; September 10, 2019