Thailand repositioning its financial sector towards digital economy

The Bank of Thailand (BoT) has conducted a public consultation on the repositioning of the country’s financial sector towards a sustainable digital economy. The central bank plans to allow commercial banks to obtain more than one banking business licence, including a planned virtual bank licence, to pave the way for the country's digital economy. BoT governor Sethaput Suthiwartnarueput said the repositioning of the financial sector needs to strike the right balance between promoting innovation and managing risk, as well as allowing for flexibility in dealing with abrupt changes. Roong Mallikamas, the BoT's assistant governor for financial institutions policy group, said that in the consultation paper, the central bank provides greater flexibility for traditional banking business operations and welcomes new innovative players, including fintech companies, digital banks, virtual banks, and others. The public hearing is scheduled to continue through Feb 28.