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Cabinet officials

EGAT Savings and Credit Union Cooperative Seeks Regulatory Reforms

Strategic Insights

— 2 min read

The Electricity Generating Authority of Thailand (EGAT) Savings and Credit Union Cooperative, on the occasion of its 46th anniversary, hosted a seminar titled "Unlocking Limitations and Survival Plans for Modern Cooperatives." The gathering aimed to address the regulatory restrictions that hinder the cooperative's operations, including the Ministerial Regulation on Deposits and Investments of Savings and Credit Unions B.E. 2567 (2024), which limits deposits or investments in juristic persons to not more than 10% of share capital plus reserves. The seminar also highlighted the Department of Cooperative Promotion's excessive interference in cooperatives' internal affairs.

Key Takeaways:

  • The EGAT Savings and Credit Union Cooperative is seeking the repeal of the Ministerial Regulation on Deposits and Investments of Savings and Credit Unions B.E. 2567 (2024), citing its inconsistency with the current economic context and cooperative operations.
  • The regulation limits deposits or investments in juristic persons to not more than 10% of share capital plus reserves, which hampers the cooperative's ability to provide better services to its members.
  • The cooperative has not received any notification on the consideration of the proposed amendments to the Ministerial Regulation, which may impact its operations and member savings.
  • The seminar aimed to enhance knowledge and understanding of the issue among members and relevant agencies, enabling them to jointly determine approaches to solving existing restrictions.
  • The regulatory reforms seek to allow cooperatives to develop clear internal criteria and standards for risk management and operational oversight, reducing external interference and enabling them to fulfill their full potential in assisting members.
  • The EGAT Savings and Credit Union Cooperative Board of Directors urges regulators to expedite the repeal of the Ministerial Regulation to avoid negatively impacting member savings and cooperative operations.

Statistics:

  • 46 years: The anniversary year of the EGAT Savings and Credit Union Cooperative, marking this seminar and the call for regulatory reforms.
  • B.E. 2567 (2024): The year the Ministerial Regulation on Deposits and Investments of Savings and Credit Unions was published in the Royal Gazette on November 26, 2024.
  • 10%: The limit of deposits or investments in juristic persons as stipulated by the Ministerial Regulation, which hampers the cooperative's ability to provide better services to its members.
  • 5 years: The transitional period for cooperatives that invested more than 10% of their share capital or investment per juristic person, which may still establish a plan for normal trading, but not exceeding the original amount of that juristic person.
  • 10 years: The additional adjustment period for cooperatives investing more than their share capital plus reserves, allowing them to increase their share capital monthly.

Sources:

  • The Electricity Generating Authority of Thailand (EGAT) Savings and Credit Union Cooperative seminar titled "Unlocking Limitations and Survival Plans for Modern Cooperatives."
  • The Ministerial Regulation on Deposits and Investments of Savings and Credit Unions B.E. 2567 (2024), published in the Royal Gazette on November 26, 2024.
  • The Cooperative Promotion Department meeting on February 13, 2025, to consider solutions to the impact of the 2024 Ministerial Regulation on Deposits and Investments of Savings and Credit Unions.

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