Published on October 2, 2007
But the former judge showed his skills at a press briefing yesterday. He found apt comparisons for items related to the Foreign Institutions Business Act, even though the issue at hand is quite complicated.
He compared the Basil II standards to the speed limit, while financial institutions were the cars on the road, containing different qualities of assets the same as cars have different performance levels. Thus, they face different speed limits.
"Basel II is just Basel I plus additional dipping sauces," he said. "It's not as complicated as we thought."
Under the law, the central bank is authorised to take action before a financially troubled institution suffers a negative capital-adequacy ratio. Krirk compared the institution to a house that
was being devastated by termites.
"All banks, regardless of sizes, are like houses," he said. "To contain the damage, we must tackle the termites before the house falls down."
What impresses the former judge about this banking law is the clause that bars guarantors from shouldering additional debt burdens without their acknowledgement.
"If this is the only clause that passes consideration, I'd feel as if I were in heaven," he said. "Which floor of heaven? I don't care when I'm in heaven."
Krirk also compared managing capital to gambling.
"If you have Bt10,000 and gamble with Bt10, it's nothing if you lose. But if the bet is raised to Bt1,000, that could raise a problem."
I doubt if bankers would find this amusing.