BoT losses taper off

BoT losses taper off

The Bank of Thailand's net loss narrowed by 9% to 80.8 billion baht in 2016, with the central bank saying its accumulated losses would not affect operations.

The central bank posted total revenue of 78 billion baht for 2016, while total expenses came in at 158 billion, the bank said in its annual report.

Last year's net loss could be attributed to foreign exchange rate losses and interest payments from liquidity absorption through the central bank's monetary policy management.

The central bank recorded a net loss of 89.1 billion baht in 2015.

At the end of 2016, the Bank of Thailand's accumulated losses widened to 725 billion baht from the 635 billion and 573 billion recorded in 2015 and 2014.

"The recorded accumulated losses will not affect the operations of the Bank of Thailand," the bank said.

Interest rate expense fell from 91 billion baht in 2015 to 82 billion in 2016, while foreign exchange rate losses surged from 38 billion baht in 2015 to 57 billion last year.

The Bank of Thailand posted revenue from interest rates worth 53 billion baht in 2016, up from 47 billion in 2015.

The bank's total assets at the end of last year amounted to 4.2 trillion baht, up from 3.8 trillion recorded a year earlier, while liabilities rose from 4.4 trillion baht to 4.9 trillion.

The increase in assets and liabilities is mainly due to the increase in the Bank of Thailand's bond issuance and losses from operations, according to the bank's annual report.

The Bank of Thailand said in a separate report that under its three-year plan, the central bank will continue to review its currency exchange barriers.

The central bank will work with other regulators on conducting stress tests and scenario planning to safeguard against potential financial instability.

Under the plan, the bank will also help financial institutions in their cybersecurity efforts and promote financial integration between Asean countries.

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