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.

Strengthen the supervision of significant and emerging risks, including those posed by the systemically important service providers in the new financial landscape. Key policies include:

• 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.
• 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.
• 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.
• 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.