2) Policy on Funding and Pricing The Bank has a policy to mobilize funds from the sources mentioned above with the amount and tenor that is most closely aligned to its requirements. Other factors taken into account are proper liquidity for the Bank’s operation and comparison of funding costs from various sources. Meanwhile, suitable deposit interest rates are determined based on liquidity in the money market and of the Bank itself, together with external factors such as interest rate trends, the Bank of Thailand’s monetary policy, competition in mobilizing deposits, national economic trends and other such factors. 3) Policy on Liability Management The Bank manages its short- term and long-term liabilities both in Thai baht and foreign currencies to match with the asset or clients’ demand for loans. In order to hedge both interest rate and FX risks, various financial instruments such as FX swap, Interest rate swap and Cross currency swap are applied manage the above liabilities efficiently, which constitutes the alignment of the Bank’s cash inflow and outflow. 4) Capital Adequacy The Bank and its subsidiaries’ capital adequacy ratios consisted of the following: (Unit: percentage) Capital ratio (under Basel III framework) The BoT’s regulation minimum requirement * 31 Dec 21 31 Dec 20 31 Dec 19 Capital Adequacy Ratio/Total Risk-Weighted Asset 11.0 19.33 19.59 18.95 Tier 1 Capital Ratio/Total Risk-Weighted Asset 8.5 15.33 15.46 14.62 Common Equity Tier 1 Capital Ratio/ 7.0 14.35 14.45 13.62 Total Risk-Weighted Asset * Includes capital conservation buffer as required by the BoT commencing 1 January 2016. 80 TMBThanachart Bank Public Company Limited
RkJQdWJsaXNoZXIy ODEyMzQ3