Happy Saturday today

I invite readers to discuss

“New Landscape in Thai Financial Sector”

“Step into a land we have never known: a new landscape in the Thai financial sector.

and a concise policy compass” in Phra Siam Magazine

Latest issue of

Bank of Thailand (BOT) tells about the monetary policy of

Concise BOT

first land -

environmentally friendly world and sustainable development

Thailand's economic structure is still 60% reliant on the use of coal and oil. Most industries still use traditional technologies that are not environmentally friendly.

If Thailand is unable to adapt in 2048, GDP will be damaged by 43.6%, almost half of it.

The BOT as a supervisory authority in the financial sector

Therefore, the directions and roles of the financial sector have been determined to be better able to respond to environmental issues, for example, by providing environmental financial services and products that meet the needs of the business sector.

standardization of economic activity grouping that takes into account the environment (taxonomy); establishing an accessible database;

and disclosure standards of financial institutions

for Thailand to have

environmental information

shared both within and outside the financial sector

What awaits in the new land, the government can implement policies at the point.

able to better connect with various economic sectors, with Thailand Taxonomy being the central standard

Second land -

The payment system on the day that Thai society is becoming cashless. In 2021, there were more than 20.7 billion financial transactions via digital payment, worth more than 460 trillion baht, with a total of 116.2 million e-money accounts, while users at bank branches decreased. Down 22% ATM users down 8%

What awaits in the new land is that people will have a variety of digital payment services to choose from to meet their needs.

have sufficient understanding

Able to take care of preliminary digital threats

Businesses also have payment services that meet their needs.

and increasing the opportunity to access credit better

The third realm-

Commercial Banks and Digital Asset Businesses During the past 3-4 years, digital assets have received a lot of attention.

It is an independent and centralized asset.

It is a new investment tool that gives high returns in the short term.

The challenge in regulating digital assets is striking a balance between fostering innovation while managing potential risks.

The direction that the BOT will go is to use a method to supervise all types of complex commercial banks that may have high risks, such as a holding company as a parent company.

The commercial bank is the parent company itself.

Adhere to the principles of governance that are consistent with the level of risk.

What awaits in the new territory is that the Thai financial system will adapt to the digital economy appropriately.

The Fourth Realm –

solve household debt

Release the time bomb for the Thai economy. In the second quarter of 2022, household debt reached 88% of GDP. The direction that the BOT will go is to do a full cycle from before incurring debt, while in debt and when there is a payment problem.

Including solving existing debts and taking care of creating new debts, but the way to solve household debt that should not be done is 1. Suspend debt payments and suspend interest for a long time

2. Delete or edit the history of information in the credit bureau.

What awaits in the new land is that the Thai economy and finances will grow steadily and stable.

Financial institutions provide credit efficiently.

more responsible

People get more fair credit.

The debtor can get out of debt and anxiety.

enabling them to use their own potential to work better

All this is

A new landscape in the Thai financial sector

New land that we must know.

"The Wind Changes Direction"