Krung Thai Bank Public Company Limited (âKrung Thai Bankâ) decided to implement the packaged IFRS solution to achieve timely compliance with Bank of Thailand (BOT) IAS 39 date lines. âIAS 39: Financial Instruments: Recognition and Measurementâ is a measure of instrument by the International Accounting Standards Board (IASB) which sets out requirements and rules for recognition, de-recognition (removal) and measurement of all monetary assets and liabilities, derivatives and equity investments. The guideline improves the transparency and provides a buffer against impaired assets, significantly strengthening the banking sector.
Krung Thai Bank procured FinArchâs proven IAS/IFRS packaged software solution after an intensive vendor selection process. The bank, together with FinArch and its Thai Distributor, YIP IN TSOI is currently in the process of project implementation.
FinArchâs IAS/IFRS solution, part of the companyâs flagship Financial Studio, addresses BOT IAS39 requirements by taking in all financial transactions, generating cash flows, calculating the IFRS valuation, generating the postings, and feeding the resulting entries back to the bankâs main general ledger. As such, FinArchâs solution meets the bankâs challenges by providing an integrated âevent to disclosureâ solution, from transaction to BOT IAS 39 regulatory report. Automation, reduction of manual intervention and reconciliations, faster closing effort, and a solid audit trail are some of the solutionâs key features. The implementation of the system is conducted jointly by FinArch and its distributor in Thailand, YIP IN TSOI Company Limited.
Khun Danai Wangsiri, Vice President of FSI at YIP IN TSOI, states: âWe are privileged to have the opportunity to be FinArchâs distributor in Thailand. We have many partnerships with foreign vendors and none is more committed than FinArch. This first successful assignment in Thailand demonstrates the synergy of leveraging the strengths of both organisations to better serve the interest of Krung Thai Bank.â
âKrung Thai Bank, the second financial institution by total asset size in Thailand, will be the leader and example for the entire banking community in Thailand,â Jeff Tan, Vice President for APAC at FinArch, comments. âPreparing for BOT IAS 39/IFRS is the wisest strategic decision not only for regulatory purposes but for the bankâs internal purposes: it increases transparency and maximises returns on their capitalization.â He adds: âIn the coming years, financial institutions will face heightened pressure from upcoming new regulations, like IFRS9, ALM, Liquidity Risk, and Basel III. With a parameterised solution like Financial Studio, Krung Thai Bank gets a head start as new deadlines approach.â