Financial Sector Master Plan

Phase III (2016-2020)


"FSMP III will work toward making Thailand’s financial sector “competitive, inclusive, connected and sustainable”."


Mrs. Tongurai Limpiti, Deputy Governor, Financial Institutions Stability, 31 May 2016



      Following the implementation of the FSMP I and FSMP II, the structure of the Thai financial sector has become more organized, with respect to institution type and scope of business. The sector grew stronger and more stable, achieving better efficiency and continually offering better access to financial services to the public.


      However, the Thai financial sector still needs to develop further, reinforcing its strengths and rectifying its weaknesses in order to benefit from the opportunities and meet the challenges from the ever changing environment, both on the domestic and international fronts. Such evolving factors include economic and financial conditions, emergence of the digital economy, regional economic integration, aging society, urbanization, and changing international regulations. The financial system has to also prepare for the expansion of financial and capital markets, and growth both in number and diversity of players, such as non-banks, e-Money service providers associated with telecommunication companies (telco), and saving cooperatives.


      For development of the FSMP III, the BOT had appointed an internal working group to work on the draft policy initiatives, measures, action plans, and implementation timeline. These materials were submitted to the Steering Committee to develop the Financial Sector Master Plan Phase III1 and the Financial Institutions Policy Committee (FIPC)2 for review and comments. Furthermore, the BOT sought comments from the business sector, the banking sector, non-banks, and various government agencies, including the Electronic Transactions Development Agency (ETDA), and the Office of SMEs Promotion Agency (OSMEP), as well as engaged an external consultant to conduct further studies on the development trends of the Thai financial system and provide policy recommendations, adding international perspectives and experiences.


1  Includes experts on socioeconomic development, banking industry, information technology, payment system, and the capital markets

2  Includes external experts, and committee members representing the Fiscal Policy Office, Ministry of Finance, Office of Insurance Commission (OIC), the Securities and Exchange Commission (SEC), and executives of the BOT. This Committee is chaired by the BOT Governor.




A competitive Thai financial institutions system which can support more diverse needs at fair and undistorted prices, promote regional trades and investments, with supervision to ensure macroeconomic and financial stability


FSMP III’s intended outcomes are as follows:


Competitive:  Thai financial institutions are competitive in both domestic and international markets, with low operating cost, wide range of products and services at fair prices.


Inclusive:  Individuals, SMEs, and large corporate can appropriately and widely access financial services in line with their needs.


Connected:  Thai financial institutions have more roles in the region and provide more cross-border financial services to support regional trades and investments.


Sustainable:  The Thai financial institutions system is robust and able to support the country’s economic growth as well as promoting sustainable economic well-being.


Policies and measures


FSMP III comprises four main initiatives as follows: 


1. Promote electronic financial and payment services and enhance efficiency of the financial system ( Digitization & Efficiency) by enhancing competitiveness of financial service providers and promoting new technological innovation to facilitate business expansion.


2. Facilitate regional trade and investment connectivity (Regionalization) by enhancing capacity of the Thai financial system to facilitate the regional economic and financial integration under ASEAN Economic Community (AEC). Key measures aim at facilitating and reducing obstacles for banks’ international expansion, for example, the establishment of Qualified ASEAN Banks (QABs), the development of cross-border financial infrastructures, and the creation of suitable financial environments among neighboring countries to foster international trades and investments in the Greater Mekong Subregion (GMS).


3. Promote greater financial access (Access) so that individuals and businesses at all sizes (small, medium, and large corporate) are able to appropriately and widely access financial services according to their needs. This will ultimately lead to a sustainable economic growth.


4. Develop financial infrastructure (Enablers) in order to fulfill FSMP III’s vision. Key infrastructures in the financial system will be developed including financial professional development, financial literacy and consumer protection, and legal infrastructure to enhance risk management and the operation of financial institutions. In addition, regulations and supervision will be strengthened in line with the international standards to ensure stability of the overall financial system.



Details of the plan

  • Financial ​Sector Master Plan Phase III (2016-2020)

  • Executive Su​mmary