Bangkok: BAM is advancing the construction of a debt resolution factory (TDR Factory) to aid in debt restructuring, collaborating with partners to set up an FA Center aimed at assisting debtors and reintegrating them into the economic system. The initiative underscores BAM's role as a "monkey cheek," functioning as a Recycling Machine to manage 100 billion baht of bad debt annually.
According to Thai News Agency, Dr. Rak Vorakitpokatorn, Chief Executive Officer of Bangkok Commercial Asset Management Public Company Limited (BAM), discussed at the 'AMC Management Innovation' seminar how BAM currently holds nearly 50% of the NPL/NPA market share. The company is capable of managing debts up to 100 billion baht per year from its existing portfolio of 500 billion baht.
The remaining 84 Asset Management Companies (AMCs) are expected to manage NPLs of a similar scale, amounting to a total of 200 billion baht. This capacity enables them to handle the equivalent of various river systems in financial terms, including the Ping River's 500 billion baht of commercial bank NPLs and the Wang River's 330 billion baht of SFI NPLs. BAM, identified as the national "monkey cheek," aims to expedite the creation of a TDR Factory to improve debtors' financial health. This effort involves utilizing AI and automation to establish precise debt restructuring conditions, minimizing subjective decision-making in resolving small debts.
BAM is also prepared to collaborate with partners to create an FA Center that focuses on supporting debtors who consistently make payments over 6-12 installments. Additionally, BAM plans to work with the National Credit Bureau (NCB) to introduce a new operational code for good AMC debtors, aiding in their sustainable reintegration into the economic system.