New regulator to oversee cooperatives, credit unions

Members of the embezzlement-hit Klongchan Credit Union Cooperative picket the Department of Special Investigation in Bangkok in November last year to demand the return of 299 assets seized from ex-KCUC chairman Supachai Srisupa-aksorn. (Photo by Tawatchai Kemgumnerd)

The government plans to set up a new regulator to oversee large cooperatives and credit unions, PM's Office Minister Kobsak Pootrakool said on Monday.

The draft legislation was being prepared he said. It would establish a state body to govern cooperatives and credit unions with holdings exceeding five billion baht. Currently there were 134 of them.

The regulator would lay down policies, regulations and guidelines for the sector and support the setting up of a fund to protect members' deposits.



The move was designed to stabilise the sector and fiscal system.



"Saving cooperatives are getting larger and they need proper oversight. Based on talks with their representatives, it is agreed a specific agency is needed to govern and push the sector forward.



"When large cooperatives are strong they can babysit smaller ones, or come up with new ideas," Mr Kobsak said.



The new regulatory body was likely to be under the supervision of the Ministry of Agriculture and Agricultural Cooperatives.



Authorities concerned including the Cooperatives Promotion Department, the Cooperatives Auditing Department, the Bank of Thailand and the Council of State have been working on the draft bill, he said.



Phichet Wiriyapaha, director-general of the Cooperatives Promotion Department, said it was planned that public hearings on the proposal would begin next month.



The draft legislation was expected to be forwarded to the cabinet for approval by the end of March, and would then be examined by the Council of State, he said.