• The Bank of Thailand will allow virtual banks to operate in the country by 2025.
• The move seeks to increase competition and boost economic growth.
• Companies interested in granting permissions will need to meet certain requirements set by the central bank.
The Bank of Thailand recently announced plans to allow virtual banks to operate in the country for the first time by 2025. The move is intended to promote competition in the financial sector and stimulate economic growth. The central bank has also published a “Consultation Paper on Virtual Bank Licensing Framework” that outlines the regulations and supervision for virtual banks.
The paper states that applications for virtual banks will be available in 2023 and that the central bank will issue three different licenses for interested companies by 2024. At least 10 parties have expressed interest in granting virtual banking permissions, according to the report. The requirements to qualify for a virtual banking license include being registered with the Bank of Thailand, providing a written proposal outlining the bank’s business plans, and meeting other criteria set by the central bank. In addition, the central bank warns that virtual banks should not initiate a “race to the bottom” through irresponsible lending, give preferential treatment to related parties, or abuse a dominant market position.
The Bank of Thailand’s move to allow virtual banking is seen as a way to increase competition in the financial sector and boost economic growth. The central bank hopes that the new regulations will help to attract more businesses to the virtual banking sector and provide more options for customers. It is also seen as a way to modernize the banking system and make it more accessible to the public.
The central bank’s move to allow virtual banking is an example of its commitment to promoting a more innovative and modern banking system in Thailand. It will help to create more competition in the financial sector and provide more opportunities for customers. It is also a step towards creating a more efficient and transparent banking system. With virtual banking, customers will have more options when it comes to their finances, and businesses will be able to access a wider range of services. This will ultimately lead to increased economic growth and development in Thailand.