The Thai banking system is safe and protected from any troubles that may engulf Deutsche Bank, according to a senior official at the Bank of Thailand.
Most of Deutsche Bank's transactions made with Thai commercial banks are involved with increasing foreign currency liquidity, and uncomplicated derivatives, said Ronadol Numnonda, the central bank's assistant governor for the supervision group.
Even if the German flagship bank is in financial difficulty, transactions with Thai banks have been backed by collateral to limit damages, he said
"The Bank of Thailand is keeping a close watch on the situation," Mr Ronadol said.
The US Department of Justice recently imposed a US$14 billion fine on Deutsche Bank for mis-selling mortgage-backed securities. The citation could deal a further blow to the bank, which in January posted its first full-year loss since 2008.
Mr Ronadol said the European Central Bank (ECB) has assured the Bank of Thailand that Deutsche Bank's financial position remains sound, and it has only failed to generate revenue as planned.
The Thai bourse was impervious to the global fear of the German banks' impact in light of the hefty fine from the US regulator.
The SET gained 7.7% yesterday to close at 1,490.94 in trade worth 30.89 billion baht.
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