Deal Closed! The Finance Ministry is preparing to propose to the Cabinet for approval of the merger between 'TMB' and 'TBANK' within this month, aiming for completion during this government term. This is part of the ministry's policy to expand business size, invest in digital services, and reduce management costs.

January 15, 2019 - Mr. Prabhat Kongyad, Director of the State Enterprise Policy Office (SEPO), revealed that SEPO and the Fiscal Policy Office (FPO) have been in continuous discussions regarding the merger of TMB Bank Public Company Limited (TMB) and Thanachart Bank Public Company Limited (TBANK). They are currently awaiting approval from Mr. Apisak Tantivorawong, the Minister of Finance, to present to the Cabinet (Cabinet) for approval within this month. Since TMB Bank is not a state enterprise but a state-owned asset, it requires Cabinet consideration.

Once the Cabinet approves, the merger can proceed immediately. Discussions have indicated that the Ministry of Finance, as a shareholder of Thai banks, must not be at a disadvantage, and it will certainly hold shares in the newly merged bank. The exact proportion will depend on the merger details, and the name of the bank post-merger has not yet been decided.

"The merger of TMB Bank Public Company Limited with Thanachart Bank Public Company Limited is something the Minister of Finance wants to happen as soon as possible. According to the plan, the Minister of Finance will consider it for submission to the Cabinet within this month, and the merger process must be completed during this government term," Mr. Prabhat stated.

Mr. Prabhat further mentioned that the Ministry of Finance has a policy for banks to merge to achieve larger sizes and reduce management costs. This will require additional investment to provide digital services, which necessitates significant funding that smaller banks cannot afford, making them unable to compete in the future. Therefore, the merger of commercial banks is beneficial for both the banks and the country's financial system, as well as for Thailand's economy.

Mr. Apisak Tantivorawong, the Minister of Finance, commented on the merger of TMB Bank and Thanachart Bank, stating that it is a matter for the banks to discuss among themselves, and the government supports the merger. Consequently, tax exemption measures for mergers have been implemented in the past.

 

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