Financial Landscape

for digital and sustainable economy

ทิศทางสำคัญ

Executive Summary

Thailand’s economic and financial system is going through a transformation. Technological advancement has accelerated an upgrade of financial services and narrowed the gap in financial access for businesses and households. However, businesses and households that are unable to adapt to the change in technology will risk falling behind even further. This could exacerbate the existing structural economic problems such as household debt and inequality issues. Meanwhile, environmental challenges have also become more imminent as the impact on the economy has been more rapid and more amplified than previously expected—both from more severe changes in weather conditions and natural disasters as well as environmentally-related trade barriers imposed by many countries.

In this rapidly evolving environment, the repositioning of the financial sector needs to strike the right balance between promoting innovation and managing risks. Moreover, the financial sector needs to be more flexible in dealing with abrupt changes. This balance is necessary to enable the financial sector to adapt to the new challenges while maintaining the economy’s resilience on course for a sustainable digital economy.

Key Forces Shaping Thailand’s Future Economy and Financial Sector

 

The Digital World

The Thai economy and financial sector are transitioning towards a digital world, as evidenced by a fourfold increase in PromptPay transactions (the national real-time retail payment system) and 9 million new platform users during the 2020–21 period. This has prompted many service providers, both from the financial and non-financial sectors, to compete against one another by leveraging technological networks, data, and digital channels to provide faster and more convenient financial services that better serve the consumer needs. One example of such new technology is distributed computing technology (e.g. blockchain), which allows consumers directly access services without intermediaries.

However, such technological advancements could introduce new types of risks, such as data leakage, cyber risks, or volatility in the prices of digital assets. Therefore, the financial sector should adapt to effectively utilize technologies and data, while exercise sound risk management in a timely and suitable manner.

 

Sustainability Movement​

Climate change is rapidly gaining ground and materiality in Thailand. The United Nations predicts that the world will be 1.5 degrees Celsius warmer in less than 20 years, likely resulting in more intensified natural disasters and Thailand is among the top 10 countries most vulnerable to climate change. The Thai industries, however, are still relying on conventional high-carbon technologies. This poses a serious concern that environmental policies implemented by developed countries, such as the EU’s Carbon Border Adjustment Mechanism, could severely jeopardize Thai industries. Therefore, the Thai financial sector should prepare themselves to capitalize on the opportunities while simultaneously mitigating risks from climate change. This involves assisting the real sector in adapting and lessening environmentally unsustainable activities, in order to mitigate the large-scale negative impact.

 

Inequality​

Financial access inequality remains high. Due to information asymmetry, more than 60 percent of small and medium enterprises (SMEs) have not obtained financing from commercial banks or Specialized Financial Institutions (SFIs). As a result, additional collateral, credit guarantees or alternative funding sources are needed, such as credit from non-bank financial institutions (non-bank FIs) and joint ventures. Another issue is the elevated household debt levels, which has reached an all-time high after rising to 90 percent of Gross Domestic Product (GDP)1. One third of the Thai population is indebted and the majority of the highly indebted2 segment have low income.

In addition, the COVID-19 pandemic has exacerbated the financial vulnerability of SMEs and the low-income. The pandemic also accelerated the digital trend and considerably increased the use of electronic payments, but some people and businesses still prefer to continue using cash and cheques3 and doing financial transactions at bank branches and automated teller machines. This poses an important agenda for policy makers as new technologies may improve financial access for users with digital literacy, it is necessary to provide support for those who are not ready to transition to digital finance. Future policy must address the needs of those financially vulnerable, so that they can appropriately access financial services and manage their debt. This entails reducing over-borrowing and managing over-indebtedness. Additionally, support should be given to those who are not able to adapt to new technology, so as to not exacerbate inequality.

1 Almost one-fourth of total household debt outstanding published by the BOT is loans issued by financial institutions not under BOT’s supervision. Some types of debt are not included in this figure such as informal debt.

2 Total debt per capita has doubled over the past 10 years, most of which contributed by consumption loans.

3 On average, 87% of payment transactions made by individuals is with cash (from the survey results of people’s daily payment behavior records (Payment Diary) in 2021). 70% of cheque transactions is that with the amount below 100,000 baht. Cheque is still used today due to its convenience and familiarity, especially for those who are not ready for digital services e.g. the elderly. Cheque also holds special characteristics suitable for businesses, such as advance payment and criminal punishment

Strategic Directions to Facilitate a Smooth Transition of Thailand’s Financial Sector

FL-Tree

Leveraging on Technology and Data to Drive Innovation​

Leveraging on technology and data to drive innovation and better financial services through Open Competition, Open Infrastructure and Open Data:

  1. Open Competition comprises an expansion of business scope and more flexibility in business operations of both bank and non-bank financial institutions (non-bank FIs), as well as new entrants to the market under risk-based supervision and level-playing field without creating monopolies or unfair market dominance in the future.
  2. Open Infrastructure aims to allow more financial service providers to access key infrastructure at fair and reasonable costs. This will support open competition and development of financial innovation. Moreover, key infrastructure will further be developed to facilitate a transition to a digital economy, e.g. Smart Financial and Payment Infrastructure for Business to support digital trade transactions and payments, retail central bank digital currencies and credit guarantee mechanism to suit a variety of funding needs.
  3. Open Data enables better utilization of data to support the development of better financial services while ensuring appropriate data governance. Open Data will also improve financial access and enable more convenient and faster financial services, for instance, through data connectivity and exchange mechanism between service providers.

 

Managing Transition towards Sustainability​

Steer the financial sector to incorporate environmental risk assessment into their business operations and to support the transition of businesses away from environmentally unsustainable activities without disrupting the economy. The financial sector also has an important role to play in facilitating households and vulnerable groups to adapt to the new, evolving economy. This policy direction entails laying out five key building blocks to enhance the role of the financial sector in the transition, e.g. green taxonomy and standard practice guidelines for financial institutions to internalize environmental risks and opportunities and offer financial products to support business transition. Moreover, the financial sector should facilitate the households, particularly vulnerable groups with high debt burden or those lacking financial and digital literacy, to adapt sustainably. Actions include ensuring responsible lending, putting in place an end-to-end debt resolution mechanism, and encouraging risk-based pricing. On top of this, the financial sector should help promote financial and digital literacy to ensure sound financial behaviors of households and to raise awareness about new financial frauds.

 

Shifting from Stability to Resiliency​

Adopt a more flexible approach on supervision that will enable financial service providers to adapt, innovate, and effectively manage new types of risks. Risk proportionality framework will be applied to a wider range of financial service providers and adopt a combination of a rule-based approach to set standards or minimum requirements and a principle-based approach that enables service providers to adopt risk management processes suitable to their risk profiles. Furthermore, regulatory impact assessment will be carried out to lessen excessive regulatory costs on the financial service providers. A non-disruptive license revocation mechanism needs to be in place for service providers that do not conduct businesses in an appropriate manner. Moreover, it is important to focus on effective regulations pertaining to systemically important players in order to reduce systemic risks, which could threaten overall financial stability, depositors, and financial service providers. For instance, risks to financial and payment system stability posed by digital assets and risks of new business models of banking groups will need to be addressed.

What Success Looks Like​

  1. The financial sector leverages on technological advancement to drive innovation and provide inclusive financial services and consumer protection, in a level playing field and competitive environment with due care for customers not to create excessive debt burden.
  2. The financial sector facilitates businesses and households in the transition to a digital economy and helps them effectively manage environmental risks.
  3. The financial sector is resilient to significant and new risk factors and able to contain systemic risks in rapidly changing environments without transmitting them to the system or consumers at large. Furthermore, financial regulations should be sufficiently flexible and do not create excessive burden on service providers.

Stakeholder Benefits from Repositioning the Financial Sector

Users

Users can freely choose financial services suitable to their specific needs in a convenient way, and at the prices consistent with their own risks by utilizing digital footprints. They are sufficiently financially literate and able to use digital financial services safely and entitled to fair consumer protection

Households

The low-income can properly access financial services and become less dependent on informal finance, while the heavily indebted receives help to recover from debt burden in a sustainable way. Those unprepared to adopt technology will be prepared to adapt to the world of digital finance.

Businesses

Businesses are incentivized and sufficiently funded to adjust smoothly during the transition to a sustainable digital economy. SMEs have better access to funding according to their specific needs and risk profile

Leveraging on Technology and Data to Drive Innovation

Open for both incumbent and new players to provide and innovate financial services

 

The BOT recognizes the opportunities presented by technological advancement and therefore proposes the following directions to promote better utilization of technology and data. The resulting financial innovations and services will meet the needs of consumers and bridge the gap in access to financial services.

 

Open Competition​

To allow both incumbent and new players to compete on a level playing field to provide better financial services and innovation for customers. Key policies are the following:

  • Introduce a virtual banking license to stimulate competition among service providers in innovating and providing financial services that meet the consumer needs.

  • Lift the limit on FinTech investment, excluding that in digital assets, by subsidiaries and affiliates in a banking group and allow for more flexible structures of banking groups to encourage innovation while safeguarding deposits and providing appropriate consumer protection.

  • Expand the scope of non-bank businesses and allow open access to infrastructure at appropriate costs to encourage competition under risk-based supervision and a level-playing field.

Learn More

Key Highlight

Both new and incumbent players are welcome to establish a virtual bank. The objective of the virtual banking license is to foster competition in developing financial services, promote innovations that meet consumer needs, as well as improving suitable access for the retail sector and SMEs. However, this should not grant market dominance leading to monopolization. A virtual bank is expected to be more agile and have lower operating costs than a traditional bank. This is a combination of the virtual bank policies of South Korea, Hong Kong, and Singapore, which aim to promote competition and stimulate innovation, together with those of Malaysia and the Philippines, which aim to improve the SMEs and retail sector’s financial access.

Further details can be found in the directional paper on Consultation Paper on Virtual Bank Licensing Framework (TH)

Virtual Bank Characteristics​

  1. Subject to the same scope of business as a traditional bank, allowing it to offer services to all consumer segments and compete with other service providers while coming under the same risk-based supervisory framework as traditional banks, namely in the areas concerning risk management, prudential measures, and fair treatment of customers. This is consistent with most international practices in licensing and supervision.
  2. Locally incorporated with a headquarter or parent company in Thailand to enable the BOT to conduct supervision through its presence in the country. This is consistent with the licensing frameworks of virtual banks in Malaysia and the Philippines, and those of digital full banks in Singapore.

 

Example

Objectives

Scope of Business

Limit on Number of Licenses

Competition

Innovation

Financial access

Full bank

Wholesale bank

Hongkong

✓

✓

 

✓1

  

South Korea

✓

✓

 

✓2

  

Taiwan

✓

✓

✓

✓

  

Singapore

✓

✓

 

✓

✓3

✓

Malaysia

  

✓4

✓1

 

✓

Philippines

  

✓4

✓1

 

✓

1 Retail and SMEs focused
2 Lending to large businesses is not allowed
3 Lend to SMEs and large businesses, and accept deposits from wholesale customers
4 Unserved and underserved segments

Allow more flexibility regarding the business scope of financial institutions so that the existing players can better compete, innovate, and meet consumer needs. For instance, the investment limit on FinTech investment, excluding that in digital assets—currently at no more than 3 percent of the bank’s capital—will be lifted for subsidiaries and affiliates within a banking group.

Support the Roles of Non-Bank Financial Institutions (NBFIs) and SFIs to efficiently bridge the gaps in the financial system and improve services.

 

Expand the Scope of Business for NBFIs​

  • Allow e-Money service providers to operate as escrow agents and provide identity verification and authentication services (Identity Provider: IdP in the electronic-Know Your Customer (e-KYC) process).

  • Allow Money Transfer (MT) and Money Changer (MC) operators to offer a broader range of services and higher transaction amount limits and provide electronic services that utilizes technologies to improve efficiency and lower costs.

  • Plan to revise non-bank MT/MC licenses to allow for broader scope of businesses and services to better serve retail customers and SMEs.

     

Support the Roles and Functions of SFIs​

Collaborate with other relevant agencies to assist SFIs in closing the gaps unmet by existing market mechanisms or other infrastructures, but not in a manner that encourages them to directly compete with private players or other SFIs. Moreover, support on personnel capacity building and sharing common infrastructure among SFIs will enhance their role in closing such gaps, which should incur the least possible fiscal burden.

Both new and incumbent financial service providers may consult the BOT, on a case-by-case basis, concerning other banking business models (which are not a virtual bank), or other financial businesses under the BOT’s supervision.

Open Infrastructure

Develop and support key domestic financial infrastructures that are efficiently utilized and accessible to service providers at reasonable and fair costs

 

To provide service providers with access to financial infrastructure at reasonable and fair costs and ensure efficient utilization of key domestic financial infrastructures. Open infrastructure will, in turn, encourage open competition, innovation, and better financial services, and expedite Thailand’s transition to a less-cash society and digital economy through the following key policies:

  • Upgrade the governance structure of the payment system infrastructure to allow greater utilization and to support innovation by having public and private stakeholders participate in policy settings.

  • Develop essential infrastructure to enhance access to financial services with risk-based funding costs such as credit guarantee mechanisms that can serve various funding needs and Smart Financial and Payment Infrastructure for Business.

  • Accelerate the reduction in cash usage, as well as reduce the use of paper cheques by half within 5 years to support the transition to a digital economy.

Learn More

Promote efficient utilization of domestic payment system infrastructure by connecting and opening to different service providers, thus enabling them to compete at reasonable costs to serve needs of the public and different business segments.

 

Enhance the Governance Framework​

Enhance the governance framework of domestic payment system infrastructure for greater utilization and innovation by exploring different approaches that may be suited to Thailand’s context. One approach is to establish a Payment Council, as has been done in other countries such as Australia and Singapore, involving various stakeholders such as commercial banks, NBFIs, consumers, regulators, and experts. They can participate in the design of payment-related policies that will later be proposed to the Payment Systems Committee (PSC), whose responsibility is to set Thailand’s payments-related policies and implement such policies to achieve tangible outcomes. Moreover, a Payment Scheme agency will manage scheme rules related to payment systems and services, e.g. terms on business operation and system development, fee structure, promotion of digital payments, and supporting innovation.

Examples of international approaches

Examples of international approaches in the management and governance of payment system infrastructure

  • United Kingdom
    • Payment Systems Regulator (PSR), an agency to supervise and make policies on the development of payment infrastructure.
    • Merger of large infrastructure providers (Bacs, Faster Payments, and Cheque Imaging Payment Systems) under the name Pay.UK to simplify and lower costs of operations, as well as to devise conditions, standards, terms of use, to ensure banks and NBFIs equal access.
  • Australia
    • Australian Payments Council focuses on involving different stakeholders in the payment-related policymaking process.
    • Merger of large infrastructure service providers (Eftpos, BPAY, NPPA) under the name Australian Payments Plus to develop infrastructure that serves the needs of various types of users and other stakeholders
  • Singapore
    • Payments Council focuses on involving different stakeholders in the payment-related policymaking process. Representatives include those from the central bank, service providers and consumers.
    • An agency to manage the development of the national Payment Scheme to manage PayNow (a real-time payment service) to design terms and conditions of its services, e.g. fees, payment system infrastructure, dispute settlements, public relations, and promotion of use.

ทบทวนโครงสร้างราคาบริการชำระเงิน​

 
Key Highligh

เร่งลดการใช้เงินสดอย่างต่อเนื่อง รวมทั้งลดการใช้เช็คกระดาษให้เหลือไม่ถึงร้อยละ 50 ของปริมาณการใช้ในปัจจุบันภายใน 5 ปี เพื่อสนับสนุนการเข้าสู่เศรษฐกิจดิจิทัล

พิจารณาทบทวนโครงสร้างราคาบริการชำระเงินโดยเฉพาะเงินสดและเช็ค ให้สะท้อนต้นทุนที่แท้จริง มีความเหมาะสม และเป็นธรรมต่อผู้ใช้บริการ ผู้ให้บริการ และผู้ลงทุนในระบบโครงสร้างพื้นฐาน ซึ่ง ธปท. จะหารือและสรุปโครงสร้างค่าธรรมเนียมกับผู้มีส่วนเกี่ยวข้องให้แล้วเสร็จภายในปี 2565 และกำหนดแผนการปรับค่าธรรมเนียมโดยเฉพาะการใช้เงินสดและเช็คต่อไป รวมทั้งกำหนดนโยบายเพื่อลดการใช้เงินสดด้วยอัตราเร่งเป็น 2 เท่าภายใน 3 ปี1 และลดการใช้เช็คกระดาษให้เหลือไม่ถึงร้อยละ 50 ของปริมาณการใช้ในปัจจุบันภายใน 5 ปี2 หลังพัฒนาให้ digital payment มีคุณลักษณะที่ตอบโจทย์ และผลักดันให้ภาคธุรกิจและประชาชนหันมาใช้ digital payment อย่างแพร่หลาย เพื่อเร่งให้ไทยเข้าสู่ less-cash society

ทั้งนี้ ในช่วงเปลี่ยนผ่านไปสู่ less-cash society จำเป็นต้องจัดให้มีช่องทางการให้บริการชำระเงินด้วยเงินสดที่เหมาะสมสำหรับผู้ใช้บริการกลุ่มที่ยังไม่พร้อมใช้ digital payment เช่น การให้บริการผ่าน white label smart machine และการให้ตัวแทนของธนาคารพาณิชย์ (banking agent) ช่วยกระจายเงินสดแก่ผู้ที่อยู่ในพื้นที่ห่างไกล เป็นต้น ซึ่งจะช่วยให้สามารถบริหารจัดการเงินสดได้อย่างมีประสิทธิภาพ ด้วยต้นทุนที่ต่ำลง และสอดคล้องกับแนวโน้มลดการใช้เงินสด

 1 อัตราการลดการใช้เงินสดในปี 2567 เป็นสองเท่าของค่าเฉลี่ยในปี 2561–2564 (สะท้อนจากอัตราการเติบโตของมูลค่าการถอนเงินสดจากตู้เอทีเอ็มและเคาน์เตอร์ ซึ่งเฉลี่ยอยู่ที่ –6.50% และ –11.18% สำหรับตู้เอทีเอ็มและเคาน์เตอร์ ตามลำดับ)

2 ภายในปี 2569 ลดการใช้เช็คกระดาษให้เหลือไม่ถึงร้อยละ 50 ของปริมาณการใช้ในปัจจุบัน ณ ปี 2564

Key digital infrastructure

เพื่อรองรับการทำธุรกรรมดิจิทัลแบบครบวงจร (end-to-end)

  • Digital ID: โครงสร้างพื้นฐานที่ช่วยเปิดประตูให้ประชาชนและภาคธุรกิจเข้าสู่โลกดิจิทัล โดยสามารถพิสูจน์และยืนยันตัวตนเพื่อลงทะเบียนหรือทำธุรกรรมที่หลากหลายได้โดยสะดวกและปลอดภัย
  • Digital Platform & Payment: กระบวนการทางธุรกิจที่เชื่อมต่อไปยังการชำระเงินในรูปแบบดิจิทัลจะช่วยสร้างรอยเท้าดิจิทัล (digital footprint) ซึ่งนำไปสู่การทำธุรกรรมทางการเงินได้หลากหลายและการเข้าถึงบริการทางการเงินอื่น ๆ
  • Data Infrastructure: กลไกหรือโครงสร้างพื้นฐานข้อมูลที่เอื้อให้ประชาชนและภาคธุรกิจสามารถใช้ประโยชน์จากข้อมูลของตนที่มีอยู่กับผู้ให้บริการทางการเงินต่าง ๆ ในการเลือกใช้หรือเปลี่ยนผู้ให้บริการได้โดยสะดวกด้วยต้นทุนที่เหมาะสม และเอื้อให้เกิดการเชื่อมโยงและนำฐานข้อมูลขนาดใหญ่ (big data) ไปใช้ประโยชน์ในการพัฒนานวัตกรรมและบริการทางการเงินได้อย่างเต็มศักยภาพ

ทั้งนี้ สามารถศึกษารายละเอียดเพิ่มเติมจากเอกสารทิศทางการพัฒนาระบบการชำระเงินไทย

พัฒนากระบวนการดิจิทัลสำหรับภาคธุรกิจแบบ end-to-end

​พัฒนาโครงสร้างพื้นฐานรองรับธุรกรรมการค้าและการชำระเงินสำหรับภาคธุรกิจ (Smart Financial and Payment Infrastructure for Business) ร่วมกับหน่วยงานภาครัฐและภาคเอกชนที่เกี่ยวข้อง เพื่อยกระดับการทำธุรกิจให้เป็นดิจิทัลแบบครบวงจร (end-to-end) เชื่อมโยงข้อมูลทางธุรกิจ การชำระเงิน และภาษีเป็นกระบวนการอัตโนมัติ (straight-through processing) ช่วยลดต้นทุนและปรับกระบวนการทางธุรกิจให้มีประสิทธิภาพมากขึ้น รวมถึงเป็นการสร้าง digital footprint ที่ช่วยเพิ่มโอกาสการเข้าถึงแหล่งเงินทุนด้วยต้นทุนที่เหมาะสม และพัฒนาระบบการโอนเงินมูลค่าสูงให้รองรับการชำระเงินของภาคธุรกิจที่มีมูลค่าสูงและการทำธุรกรรมตลาดทุน

 

พัฒนาสกุลเงินดิจิทัลในระดับประชาชน

​พัฒนาและทดสอบการออกสกุลเงินดิจิทัลในระดับประชาชน (Retail CBDC) ที่เปรียบเสมือนเงินสดในรูปแบบดิจิทัลที่ออกโดยธนาคารกลาง เพื่อเป็นโครงสร้างพื้นฐานที่เปิดกว้างให้ผู้ให้บริการสามารถต่อยอดการพัฒนานวัตกรรมด้วยการนำเทคโนโลยีมาใช้ในรูปแบบใหม่ รองรับการเข้าสู่เศรษฐกิจดิจิทัลในอนาคต และเพื่อเป็นสกุลเงินดิจิทัลทางเลือกสำหรับประชาชนที่มีความปลอดภัย ประสิทธิภาพสูง และต้นทุนต่ำ โดยคาดว่าจะเริ่มทดสอบการใช้งานในวงจำกัด (pilot test) ประมาณปลายปี 2565

 

วัตถุประสงค์ของการชำระเงินรูปแบบต่าง ๆ

  • เงินสด/เช็คกระดาษ เพื่อการชำระเงินที่ทั่วถึงและรองรับกลุ่มคนที่ยังไม่มีความพร้อม หรือยังเข้าไม่ถึงบริการชำระเงินดิจิทัล
  • Digital payment เพื่อเพิ่มประสิทธิภาพและความสะดวกในการชำระเงินของประชาชนและธุรกิจที่มีบัญชีธนาคารหรือ e-money wallet
  • Retail CBDC เพื่อเป็นโครงสร้างพื้นฐานที่เปิดกว้างให้ผู้ให้บริการสามารถต่อยอดการพัฒนานวัตกรรมด้วยการนำเอาเทคโนโลยีมาใช้ในรูปแบบใหม่ รองรับการเข้าสู่เศรษฐกิจดิจิทัลในอนาคต และเพื่อเป็นสกุลเงินดิจิทัลทางเลือกสำหรับประชาชนที่มีความปลอดภัย ประสิทธิภาพสูง และต้นทุนต่ำ

 

พัฒนามาตรฐานกลางและการเชื่อมโยง

​ผลักดันโครงสร้างพื้นฐานทางดิจิทัลที่จำเป็นและพัฒนามาตรฐานกลางและการเชื่อมโยงโครงสร้างพื้นฐานกลางที่สำคัญร่วมกับหน่วยงานที่เกี่ยวข้อง ได้แก่
  1. โครงสร้างพื้นฐานเพื่อพิสูจน์และยืนยันตัวตนทางดิจิทัล (digital ID) ที่สามารถเชื่อมต่อระหว่าง platform (interoperability) ทำให้ผู้ให้บริการสามารถเข้าถึงและพิสูจน์ตัวตนของลูกค้าจากแหล่งที่น่าเชื่อถือด้วยต้นทุนที่เหมาะสม และลูกค้าสามารถยืนยันตัวตนเพื่อใช้บริการทางการเงินได้สะดวกและปลอดภัย รวมถึงการพิสูจน์และยืนยันตัวตนทางดิจิทัลสำหรับนิติบุคคล (corporate digital ID) ผ่านโครงสร้างพื้นฐาน National Digital ID (NDID) โดยผลักดันร่วมกับกรมพัฒนาธุรกิจการค้าและสำนักงานพัฒนาธุรกรรมอิเล็กทรอนิกส์ (สพธอ.) โดยมีเป้าหมายที่จะเริ่มทดสอบ use case สำหรับนิติบุคคล เช่น การเปิดบัญชีธนาคาร ภายในปี 2565
  2. การใช้ลายมือชื่อดิจิทัล (digital signature) ที่มีต้นทุนต่ำ ใช้งานง่าย รองรับได้หลายผลิตภัณฑ์ เช่น ให้บริการในรูปแบบ platform สำเร็จรูป และสัญญาดิจิทัล (digital contract) ในเอกสารสัญญาทางการเงิน เช่น การให้สินเชื่อดิจิทัล (digital lending) และการปรับโครงสร้างหนี้ดิจิทัล (digital debt-restructuring)

 

ส่งเสริมความรู้และทักษะทางการเงินดิจิทัล

​ส่งเสริมความรู้และทักษะทางการเงินดิจิทัล (digital literacy) และสนับสนุนให้ภาครัฐ ภาคธุรกิจ และประชาชนในวงกว้างใช้บริการชำระเงินดิจิทัลเป็นทางเลือกหลักแทนการใช้เงินสดและเช็ค โดยผลักดันให้มีความร่วมมือระหว่างหน่วยงานภาครัฐ ภาคเอกชน และภาคการเงิน เช่น “คณะทำงานส่งเสริมความรู้และการใช้ digital payment” เพื่อบูรณาการการเสริมสร้างความรู้ ความเข้าใจ และการส่งเสริมการใช้ digital payment ของประเทศให้เป็นวาระแห่งชาติ เพื่อให้การสื่อสารและการผลักดันเรื่องนี้เป็นไปในทิศทางเดียวกัน มีความต่อเนื่อง และเกิดผลเป็นรูปธรรม

พัฒนากลไกการค้ำประกันเครดิตให้สามารถช่วยสนับสนุนความต้องการเงินทุนที่หลากหลาย ร่วมกับภาครัฐ ด้วยการจัดตั้ง General Credit Guarantee Facility (GCGF) เพื่อช่วยให้ธุรกิจโดยเฉพาะ SMEs ในแต่ละช่วงของวงจรธุรกิจและธุรกิจที่ได้รับผลกระทบในภาวะวิกฤตสามารถเข้าถึงแหล่งเงินทุนได้ดีขึ้น รวมถึงสนับสนุนการเข้าถึงแหล่งเงินทุนเพื่อพัฒนาโครงสร้างพื้นฐานสำคัญของประเทศ (infrastructure finance) โดยให้ GCGF

  1. สามารถค้ำประกันสินเชื่อทั้งที่ปล่อยโดยสถาบันการเงินและผู้ให้บริการที่ไม่ใช่สถาบันการเงินได้
  2. สามารถสนับสนุนการเข้าถึงแหล่งเงินทุนรูปแบบอื่นนอกจากสินเชื่อที่เหมาะสมกับความต้องการของ SMEs ในช่วงเริ่มต้น (start-up) SMEs ขนาดกลางที่พร้อมเข้าสู่ตลาดทุน และบริษัทขนาดใหญ่ เช่น การร่วมทุน การออกตราสารหนี้และตราสารทุน และ
  3. สามารถสนับสนุนการลงทุนตามทิศทางการขับเคลื่อนเศรษฐกิจของประเทศในระยะยาว รวมทั้งเสริมสร้างศักยภาพของกลไกค้ำประกันเครดิตโดยเฉพาะการประเมินความเสี่ยงด้านเครดิตของลูกหนี้หรือโครงการที่ขอรับการค้ำประกัน เพื่อให้สามารถบริหารจัดการความเสี่ยงและกำหนดอัตราค่าธรรมเนียมการค้ำประกันที่สะท้อนความเสี่ยงของลูกหนี้หรือโครงการที่ขอรับการค้ำประกันได้อย่างเหมาะสม

Open Data

Enable better utilization of data and data sharing mechanisms among service providers

 

To enable better utilization of data and data sharing mechanisms among service providers. Consumers can make use of their data collected by different service providers to receive better services and to choose or switch service providers at reasonable costs. Also, big data databases that are currently scattered across different agencies will be connected, so that service providers can utilize data from various sources in creating financial innovations in accordance with appropriate data governance and data security principles. For example, credit analysis based on behavioral data and debt serviceability will enable thin-file SMEs and borrowers with insufficient credit history to gain better formal financial access with risk-based pricing.

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Implement Open Banking policies that enable data owners to easily transfer their own data from one service provider to another at reasonable costs, with no barriers in choosing or switching their service providers. Open Banking requires developing data exchange mechanisms, in collaboration with financial institutions, that allow data owners to give consent to financial service providers to disclose or send their data to third party providers. Also, setting standards for Application Programming Interface (API), data and security are necessary to enable the transfer of data between service providers. This will ensure operational standards to share data in an efficient, secure, and quick manner without imposing restrictive conditions or charging excessively high fees that would hinder data owners from accessing and utilizing their own data. A pilot program was launched in January 2022 with bank statement transactional data (Digital Statement: dStatement) with future plans to expand the scope of data exchanges to other service providers in the financial and non-financial sectors e.g. insurance premium payments, utility bill payments, etc.

More information will be provided in the Open Banking Directional Paper which will be published around 2023.

Promote database connectivity and the effective utilization of micro-level data for analytics and development of financial innovations and services. A collaboration among private and public agencies will be set up to develop mechanisms, infrastructure and legal framework amendments to facilitate the linkage of micro-level data from various agencies and form big data comprising both financial and non-financial data (e.g. behavioral data on money transfers and payments). Such extensive database will be useful for conducting comprehensive data analytics, supporting public policy initiatives, and developing financial innovations and services. For example, a data-driven, risk-based models using the borrower’s behavior and debt serviceability data can help determine interest rates for thin-file borrowers and SMEs with insufficient credit history, thus allowing them to have better access to formal lending.

In addition, micro-level database must be subject to proper data governance and must not violate data privacy rights. For example, only anonymized and pseudonymized data are available for third parties to access for analytics, with mechanisms or strict security procedures to prevent data leakages.

Managing Transition towards Sustainability

The BOT is giving high priority to the issue of sustainable growth, especially that related to the environment, which has rapidly gained grounds and materiality more than previously anticipated. In this regard, the BOT is taking actions to steer the financial sector to incorporate environmental considerations into their risk assessments, support businesses in coping with environment-related risks and transitioning away from environmentally unfriendly activities without disrupting the economy. Another focus is the issue of inequality which is a key structural weakness in Thailand. The BOT will need to ensure that its policies can enable households and vulnerable groups to adapt to the new global trends. Two proposed directions are as follow.

 

Environmental Sustainability

Encourage the financial sector to incorporate environmental considerations into their operations in a systematic manner and to offer financial products that facilitate businesses adaptation and transition away from environmentally unsustainable activities by establishing the key building blocks for a green financial ecosystem in collaboration with other relevant agencies

Key Highlight

Steer the financial sector to systematically incorporate environmental considerations into their operations and to offer financial products that facilitate businesses adaptation and transition away from environmentally unsustainable activities without disrupting the economy. Such transition is especially important for businesses that have yet to incorporate climate change into their operations, which constitutes quite a significant proportion in developing countries like Thailand. These aspirations are in line with the nation’s goal of achieving carbon neutrality by 2050 and net zero emission by 2065. The BOT, in collaboration with other relevant agencies, seeks to establish the key building blocks to support a green financial ecosystem, e.g. developing a national green taxonomy and issuing standard practice for financial institutions to integrate environment-related risks and opportunities into their operations as appropriate.

Further details can be found in the directional paper on Transitioning towards Environmental Sustainability under the New Thai Financial Landscape

Policy Stances

What we wish to see

The financial sector can assess environment-related risks and opportunities in their day-to-day business operations and have available the financial products and services needed to promote and support business transition. The financial sector plays a part in the development of infrastructures necessary for the transition as part of a whole-of-government approach towards a common national goal.

What we do not wish to see

The financial sector is not incentivizing or is posing obstacles to the needs of the economy. For example, the financial sector underestimates environment-related risks and incurs significant losses in their lending and investment portfolios as a result. On the contrary, the financial sector could also over-estimate environment-related risks so much that it incurs other risks: - the financial sector pushing too hard to promote eco-conscious businesses thus cultivating large demand for investment in those businesses to the point that asset prices rise too quickly beyond what is justified by their fundamentals i.e. ‘green bubble’; and - the financial sector abandoning businesses still in transition too soon that the economy could not adapt. In addition, public policies, both in the financial sector and the real sector, are not aligned in such ways that the national objective might not be achieved as planned.

Develop Thai Taxonomy​

Promote the development of a national green taxonomy. The Thai Taxonomy will establish the definition of what economic activities are considered ‘green’ or ‘in transition’ in a manner that is appropriate and suitable to Thailand’s context. The taxonomy should help identify and promote allocation of resources towards those activities. Emphasis would initially be placed on industries that lag behind in the transition, especially those that emit large amounts of greenhouse gas. The Thai Taxonomy will also be aligned with the ASEAN Taxonomy as well as other internationally recognized taxonomies such as the EU Taxonomy and the Climate Bonds Taxonomy.

 

Set Disclosure Standards​

Set disclosure standards so that financial institutions could show their commitments and actions on environmental sustainability in a manner that is clear and consistent with international standards such as those recommended by the Task Force on Climate-related Financial Disclosures (TCFD). The BOT will also collaborate with other regulatory agencies to encourage the adoption of disclosure standards among other financial players as well as non-financial businesses to make environment-related data more widely available in Thailand. The BOT will also consider the possibilities of pushing forth the creation of data platform to facilitate data connectivity and information sharing between different agencies, both within and outside the financial sector, to support the analyses and assessment of climate-related risks and opportunities.

 

Promote Financial Products to Support the Transition​

Actively encourage the introduction of new financial services and products that would help businesses adapt and transition away from activities that are environmentally unsustainable. The BOT will collaborate with financial institutions to develop good practice guidelines including the conduct of scenario analysis as well as climate stress testing. This will encourage financial institutions to

  1. materially incorporate environmental consideration and risks into their risk management practices and day-to-day operations in a systematic manner; and
  2. design financial products and services that reflect those risks and support businesses in the transition towards more sustainable practices.

 

Create the Right Incentive Structures​

Put in place mechanisms or measures to help alleviate the burden or cost of adjustments for financial institutions and businesses will facilitate a timelier transition. Particularly, the aim is to increase SME’s access to the financing they need to adjust and transition to a more sustainable practice. One example is Singapore’s grant scheme to help reduce the validation expense of green loans application.

 

Build Up Capacity of Financial Sector Personnel​

Build competencies and skills in the financial sector. The BOT will collaborate and exchange views and experiences with other financial regulators and banking associations to build up the capacity of financial sector personnel so that they are equipped with competencies and skills to utilize the tools, appropriately assess climate-related risks and opportunities, and learn from experiences of experts in the fields, relevant agencies, and international communities.

For these actions to yield concrete outcomes, it will be necessary to have common objectives at the national level as well as integrated efforts from all parties involved as seen in the EU, China, South Korea, and Singapore. The BOT will therefore push for the implementation of these actions together with government agencies, the financial sector, businesses, and the general public in order to achieve our shared national goals.

Household Financial Health

 

Key Highlight

Encourage the financial sector to play a part in facilitating households to make a smooth transition towards digital finance and helping heavily indebted households manage their debts in a sustainable fashion. The policy initiatives include promoting digital financial literacy among households so that they can effectively adopt digital financial services and offering sustainable solutions to household debt problem through measures targeted at all stages of debt (i.e. before, during, and after being indebted). The latter includes

  1. enhancing financial knowledge and skills to bring about a change in consumer financial behavior;
  2. ensuring responsible lending to prevent household over-indebtedness;
  3. establishing a holistic mechanism to resolve debt problems so that households can restructure the debt to a level that is more manageable over the long run. This includes the debt they owe to financial institutions both within and outside the BOT’s supervision;
  4. collecting data related to personal credit information from various financial service providers or agencies and utilizing those data to enhance retail lending credit processes.

To ensure that financial problems are resolved in a more sustainable manner, the measures should be implemented in tandem with other measures on raising income and promoting savings for emergencies and retirement.

Further details can be found in the directional paper on Directional Paper on Sustainable Solutions to Thailand's Structural Debt Overhang Problems (TH)

Policy Stances

What we wish to see

Households have good financial discipline and digital financial literacy and are well aware of new forms of financial fraud.

What we do not wish to see

Heavily indebted households are unable to adapt over the long-term, or resort to incurring more debt than they can afford to repay leading to further debt overhang. Households with the capacity to service debt are unable to access credit as much as they should or incur more debt than they could afford.

Promote Financial Literacy​

Promote financial literacy and digital financial literacy to bring about a change in people’s financial behavior and help them keep up with development of new technologies and financial innovations.

  1. Develop a database for financial and digital finance literacy. In collaboration with relevant agencies, this knowledge resource should be easily accessible, up to date with latest financial frauds, and tailored to the needs of the target groups.
  2. Encourage financial service providers to play a role in incentivizing good financial discipline among consumers such as saving for retirement or making debt repayment on time or before the due date.

 

Ensure Responsible Lending Practices​

Ensure responsible retail lending practices that account for borrowers’ repayment ability to prevent over-indebtedness. Under BOT’s supervision, financial institutions and retail credit providers should ensure that their lending practices take due consideration to ensure that borrowers would still have enough disposable income to cover the basic spending needs. Moreover, households should not become overindebted especially from borrowing for unnecessary consumption spending. For instance, the total debt service ratio (DSR) should be a priority consideration, especially when lending to the vulnerable groups. This is also the case for when the borrower could arrange to have the debt service amount deducted from their salary income in advance. The BOT will closely monitor developments in household debt and consider the need for macroprudential measures to help slow down borrowing for unnecessary consumption spending once the economic recovery gains traction.

 

Promote Holistic Debt Resolution​

Promote holistic mechanisms for resolving debt so households can adjust and make a recovery over the longer-term without returning to insolvency. The BOT will collaborate with related agencies to devise a plan that would bring about sustainable solutions for households that owe large amounts of debt to financial service providers or other bodies such as saving cooperatives, governmental employees (e.g. loans benefit for civil servants), and the Student Loan Fund. This includes

  1. designing repayment plans that are appropriate to borrowers’ ability to service debt over the longer-term, whilst retaining enough disposable income after debt repayments;
  2. adjusting regulations or loan terms to reduce and ensure fair debt burden such as by applying the repayments to the principal amount first;
  3. offering terms that incentivize borrowers to continue repaying their debts on time and complete debt repayments earlier such as by reducing the principal owed for those with good repayment track record.

 

Promote the Collection of Household Credit Data​

Promote a collection of comprehensive credit data issued by various financial service providers or agencies and utilization of those data to enhance retail credit underwriting. The data should support creditworthy households to have access to credit with risk-based pricing. Those data should also be utilized in tackling insolvency and reducing over indebtedness. One possible solution in the short-term is to collaborate with relevant agencies to encourage non-bank retail credit providers and key saving cooperatives to become members of the National Credit Bureau (NCB). Over the longer-term, the databases of various agencies should be connected into one large database that financial service providers can leverage to develop and offer financial products that better fit the needs and capabilities of the borrowers. Such data should also be further used in developing a scoring system to promote good financial behavior and credit culture in the financial system (details as outlined under Open Data).

Shifting from Stability to Resiliency

Players in the financial sector are leveraging on new technology and data to remain competitive and to offer better services to their customers while also facing new forms of risks. Amid such developments, the BOT is shifting towards a more flexible regulatory framework that allows financial service providers to capitalize on the digital trend while ensures that they could respond to significant and emerging risks in a timely manner. Two proposed directions are:

 

Greater Flexibility and Less Regulatory Burden​

Improve the supervisory framework to address different risk profiles of a more diverse service providers and review regulations that could hinder their abilities to adapt to the new financial landscape. Key policies include:

  • Apply a risk-proportionality approach to the supervision of service providers that are becoming more and more diverse, with the service providers being responsible for their own risk management approach and proving to the supervisory agency that their risks are appropriately managed according to their risk profile.
  • Assess regulatory impact and reduce regulatory burden on service providers, including promoting the use of risk-based pricing which will serve as basis in the review of interest rate ceiling for retail lending and streamlining the operating procedures under the Regulatory Sandbox.

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Apply a risk-proportionality approach to the supervision of increasingly diverse service providers. The BOT seeks the optimal combination of (i) a rule-based approach to set standards or minimum requirements and (ii) a principle-based approach that enables financial service providers to adopt risk management processes suitable to their risk profiles. Moreover, service providers will carry the burden of proof to demonstrate their risk management abilities to the supervisory agency according to the degrees and types of risks pertaining to the service providers

Review regulations that are currently limiting the service providers’ abilities to adapt, compete, innovate, or serve customers better. Examples include promoting risk-based pricing on retail lending rates before a review to lift the interest rate ceiling for retail loans. As a result, borrowers whose risk levels are below the ceiling rate will face lower interest rates while also expanding credit access to those with higher risk. Another revision aims to review the Regulatory Sandbox to improve clarity on the criteria and processing time to reduce burdens on participants. On this front, the BOT is scheduling hearings and consultation in the first half of 2022 with relevant parties, such as the Thai Bankers' Association and the Association of International Banks.

Establish an exit mechanism that allow financial service providers facing business challenges or are unable to compete, to cease operations without disrupting the financial system or inflicting large-scale losses to the economic and financial system, depositors, and consumers. The BOT aims to set up conditions and procedures for the service providers to return their licenses or registration certificates and exit in an orderly fashion. In addition, there will be a license/ certification revocation process for the service providers who do not conduct businesses appropriately such as those with prolonged period of inactivity or willful non-compliance.

Timely and Effective Supervision of Emerging Risks​

Strengthen the supervision of significant and emerging risks, including those posed by the systemically important service providers in the new financial landscape. The timely and effective supervision would alleviate negative impacts and help avert widespread disruption to the economic and financial system, depositors, and consumers.

 

  • Discourage the adoption of digital assets as means of payment for goods and services in replacement of Thai baht. Such development would potentially create adverse impact on financial stability and the overall economic system.
  • Ensure that the changing risks associated with the restructuring of financial business group affiliated with commercial banks and their expansion of business scope into technologies and digital channels are appropriately account for in the supervisory framework to protect depositors and consumers.
  • Supervise NBFIs based on their risk profiles and their systemic importance (risk proportionality), without creating unnecessary regulatory burden, to limit the potential adverse impacts on financial stability and consumers at large.

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The BOT discourages the adoption of digital assets as a means of payment (MOP) for goods and services. A wide-scale replacement of the Thai baht by digital assets would create a new unit of account and adversely affect the public and the economy in several aspects namely:

  1. cost and security of both payers and receivers, since digital assets are subject to high price volatility and the lack of security standards makes them well suited for facilitating money laundering;
  2. payment systems stability, since digital assets can cause fragmentation and redundancy within the payment systems weakening their efficiency and increasing transaction costs; and
  3. financial stability and management of domestic financial conditions: the absence of an organization with the ability to inject liquidity in the form of digital currency during crisis, for instance, can compromise the financial stability.

This cautionary stance and policies towards digital assets are shared among regulators in several jurisdictions such as the US, Europe, South Korea, Singapore, and Malaysia.

Other Countries


Digital Asset Regulation in Other Countries

  • El Salvador: Accepts Bitcoin as legal tender (Sep 2021).
  • US: Proposes a regulation to limit stablecoin issuers to only financial depository institutions; other key related businesses such as a stablecoin wallet provider that supports payments of goods and services would be regulated.
  • EU: Proposes Regulation on Markets in Crypto-assets (MiCA) to regulate different cryptoassets including stablecoin and related service providers, which aims to be issued in 2024 (2020).
  • UK: Conducts hearings on supervising stablecoin as a means of payment (2021).
  • Singapore: Regulates cryptoassets that function similar to e-money using the current payment system regulation; bans any advertisement or influencer marketing related to buying and selling cryptoassets (Jan 2022).
  • Hong Kong: Considers issuing a stablecoin regulation framework and monitor views of other countries.
  • Malaysia: Views cryptoassets as a poor medium of exchange (Dec 2022).
  • Thailand: Discourages the use of DA as means of payment due to associated risks to the public.
  • India: Proposes a regulation to ban cryptoassets as means of payment.
  • Indonesia: Bans the use of cryptoassets as means of payment (2018). The National Ulema Council bans using cryptoassets as currency (2021).
  • China: Bans financial institutions/payment service providers from providing crypto-related services e.g. trading clearing settlement (Sep 2021).

Nonetheless, for certain digital asset-related services and systems that can enhance the payment systems and financial innovation, the BOT would seek to provide suitable supervision to protect consumers and address risks to the financial and payment systems stability. Examples of the services under BOT’s consideration include the issuance of Thai baht-backed stablecoins. The oversight would consider the nature of services provided and their associated risks in the following dimensions:

  1. scope of businesses;
  2. stability mechanisms; and
  3. maintenance of IT system security and data privacy.

 

Uses of Digital Assets in Financial Institutions or Associated Business Groups​

Financial institutions or associated business groups who seek to adopt decentralized computing technology (e.g. blockchain) that requires the holding of digital assets to increase efficiency in financial services or banking affiliates looking to conduct business related to digital assets can consult with the BOT on a case-by-case basis. Considerations will be based on the overall benefits, operational guidelines and risk management practices including proper protection of depositors and consumers. It must be noted that the applications or business models related to digital assets must not support their use as means of payment (MOP) for goods and services.

Other Countries

Recently, there has been strong interest by the financial institutions and associated business groups in Thailand to adopt new technologies and innovation for better financial services, including businesses related to digital assets. In other countries, financial institutions have limited investment in digital asset related businesses of which most are involved in digital asset custody business. Regulators in many countries are still considering licensing and regulatory guidelines for digital asset investment and related businesses.

 

Regulatory guideline by country: Business Scope of Digital Assets by Financial Institution Groups

  • Singapore and Switzerland: adopt an activity-based approach in regulating DA business
  • USA: Federal law by the OCC allows only DA custodian (on a case-by-case) and the issuance of stable coins for payment
  • Thailand: banking subsidiaries and affiliates can consult with BOT on a case-by-case basis and banks are not alloed to conduct DA businesses and activities, except issuing or holding DA to develop innovation
  • Hongkong and UK:  consider on a case-by-case basis
  • China and Indonesia: prohibit any engagement in DA businesses and activities

Example includes exchange, broker, dealer, investment advisor, FA/ICO Portal (due diligence), custodian, private fund, holding/investment transactions, digital asset/stablecoin issuance.

Source: Official regulators’ websites

Appropriate supervision of commercial banks’ financial business groups, especially those undergone organizational restructuring as part of the effort to leverage new technologies and digital infrastructure. These include FinTech or e-commerce platforms that are connected to financial services.

 

Enhance Governance and Risk Management​

Enhanced supervision of corporate governance and risks of financial business groups, using risk-based approach and considering their significance to the respective commercial banks and their financial business group. Specifically, attention would be paid to roles of boards of directors of holding companies that are also parent companies with regards to risks oversight and prevention of any conflict of interest. Another area of focus is supervision of evolving IT/cyber risks undertaken by firms within the financial business groups which seek to capture opportunities presented by new technology and digital channels. The IT/cyber risk supervision framework for NBFIs would correspond with their risk profile and would be under the same standard that financial institutions comply to.

 

Supervise the Financial Business Groups​

Supervise transactions within financial business groups as well as between commercial banks and their respective business groups. The oversight will monitor, for instance, funding or loan provision by commercial banks; shared distribution channels such as branches, digital and other sales channels; shared system; and customer data utilization to prevent the transmission of risks between the two entities. The goals are to address threats to the stability of both the business groups and deposit-taking commercial banks, as well as to prevent conflict of interest or unfair treatment of consumers.

 

Collaborate with Relevant Supervisory Authorities​

Collaborate with relevant supervisory authorities to (i) to develop framework for supervising and monitoring new dimensions of risks associated with financial business groups, which have implications on the financial system stability; and (ii) to outline appropriate consumer protection framework.

Extend the regulatory purview to include non-bank FIs (NBFIs) and their business groups that provide a wide range of financial services and are systemically important. This is intended to mitigate transmission of risks and prevent abuse of market power that could lead to significant adverse impact on the financial system and consumers at large.

 

Assess Risks to Regulate NBFIs​

Assess risk and systemic importance of NBFIs and their business groups offering diverse financial services. The evaluation will consider:

  1. their sizes;
  2. interconnectedness and potential risk spillovers to other sectors in the financial system, for example, through large scale bond issuance that can pose risks to the public;
  3. the significance of the service providers, both in terms of the degree of substitutability and their potential abuse of market power. For instance, a major creditor in a certain segment or a platform provider with many active users may be regarded as important players; and
  4. complexity of potential threats such as those associated with business groups with complicated structure or high volume of complex transactions.

 

Supervise NBFIs and Their Business Group Offering Diverse Financial Services​

More vigilant supervision of systemically important NBFIs, with particular focus on the prudence dimension. These include corporate governance, risk management, maintenance of capital buffer, and preventative measures and contingency plans for stress period designed to mitigate adverse impacts on the financial system and consumers. Consolidated supervision of systematically important NBFIs’ business groups with diverse financial services would also be considered to (i) ensure prudence and limit risk transmissions within group that could potentially undermine stability of the overall business group or significantly important NBFIs within group as well as to (ii) prevent the abuse of market power, conflict of interest, and unfair treatment of consumers. The consolidated approach is consistent with those adopted or under considerations of supervisory agencies in China, the US, and Europe.

Apply activity-based supervision of major retail lenders in terms of consumer protection and macroprudential policy associated with household debt. A supervision guideline for the currently unregulated non-bank retail lenders with high volume of transactions and rapid growth will be issued such as hire-purchase and leasing companies, so they will be under the same supervisory framework as that of commercial banks and regulated non-bank retail lenders.

Apply the same supervisory standard of IT/cyber risks as that of financial institutions to NBFIs without incurring unnecessary burden and building human capital on IT/cyber.

 

Apply Risk-Based Approach for IT Supervision​

Regulate NBFIs under the supervision of the BOT with a standardized framework for IT/cyber risk supervision and appropriate risk management that suits their risk profiles. The supervision aims to elevate NBFIs’ preparation for increasing IT/cyber risks and limit spillovers to other sectors. At the same time, excessive regulatory burden and costs for the NBFIs would be avoided by (i) allowing them to demonstrate or prove their ability to manage IT/cyber risks through self-assessment exercises and (ii) collaboration with other regulatory authorities to lessen compliance cost and burdens of complying to multiple IT/cyber regulations, for instance, accepting single report submission instead of requesting multiple submissions to each regulatory agency.

 

Build IT/Cyber Talents​

Facilitate IT/cyber capacity building by building human capital on IT/cyber will be leveraged on close collaboration among key financial agencies, e.g. Thailand Banking Sector CERT (TB-CERT), to raise IT/cyber risk awareness among boards and high-level executives of financial institutions. Moreover, the BOT will cooperate with other national agencies such as National Cyber Security Agency (NCSA) to further strengthen IT/cyber expertise and develop a talent pool for the financial sector.

Public Hearing

  • 1 Feb 2022 - Consultation Paper on Repositioning Thailand’s Financial Sector for a Sustainable Digital Economy

  • 25 Mar 2022 - Feedback Summary on Repositioning Thailand’s Financial Sector for a Sustainable Digital Economy (TH)

  • 12 Jan 2023 - Consultation Paper on Virtual Bank Licensing Framework (TH)

Directional Paper and Policy

  • 7 Jul 2022 - Banking Group’s Digital Asset Business: Supervisory Approach and Management of Risks to the Financial System

  • 23 Aug 2022 - Directional Paper on Transitioning towards Environmental Sustainability under the New Thai Financial Landscape

  • 15 Sep 2022 - Directions for Development of Payment Systems under the New Thai Financial Landscape (TH)

  • 14 Feb 2023 - Directional Paper on Sustainable Solutions to Thailand's Structural Debt Overhang Problems (TH)

Feed Back Summary (TH)
Master Plan

Contact for more information finlandscape@bot.or.th

Find out more about Financial Landscape

Financial Landscape

Principle direction and policy

Digital Finance

Leveraging on technology and data to drive innovation and better financial services

Sustainable Finance

Support the transition of financial sector and businesses away from environmentally unsustainable activities without disrupting the economy.

Resilient Regulation

Adopt a more flexible approach on supervision that will enable financial service providers to adapt, innovate, and effectively manage new types of risks.

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