Thailand Allows Non-Banks to Form Asset Management Joint Ventures

Thailand’s central bank will now permit non-bank institutions to establish asset management joint ventures to help resolve bad loans, expanding a framework previously limited to banks, according to rules published in the Royal Gazette. Applicants have two years to file, with each JV-AMC allowed to operate for up to 15 years. Initially deployed during the pandemic, the scheme has been extended to support ongoing debt workouts. Krungthai Bank plans to apply next year and expects its JV-AMC to manage secured NPLs, while unsecured debt will likely transfer to state-owned Sukhumvit Asset Management. Kasikornbank said it has no immediate new plans, citing existing partnerships through JK AMC with JMT Network Services and Arun JV-AMC with Bangkok Commercial Asset Management. The move is expected to broaden investor participation in Thailand’s distressed-asset market.