BOT Cuts Bank Fees for Public & SMEs - Starts July

Khaosod•Economy•136d ago

Reader Briefing

The Bank of Thailand is implementing bank fee reductions and evaluating virtual bank readiness.

•The Bank of Thailand (BOT) is proposing fee reductions for banking services to lighten the load on individuals and SMEs.
•These fee adjustments are expected to be finalized in May and officially implemented in July.
•The BOT is also overseeing the establishment of virtual banks, with an expectation that two out of three licensed entities will be operational by year-end.

Overview

•The Bank of Thailand (BOT) is proceeding with plans to reduce banking fees.
•Fee reductions are intended to alleviate financial burdens on both individuals and Small and Medium Enterprises (SMEs).
•The BOT is currently in a public consultation phase for fee adjustments, with finalization expected in May.
•The new fee structure is slated for official announcement and implementation starting in July.
•The BOT is also assessing the readiness of three licensed virtual banks.
•Two out of the three virtual banks are projected to be operational by the end of the current year.
•Licensed virtual banks must complete system, IT, and risk management preparations before official launch.
•Virtual banks are permitted to request extensions for their launch if not fully prepared, with a potential extension to June 2027.

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Key Quotes

Sawadol Kaewchandra

"I believe all Virtual Banks intend to establish and offer services to help provide loans in areas banks cannot reach, as loan growth is currently contracting, admitting it contracts with the economic conditions that are not growing much."

เชื่อว่าทุก Virtual Bank มีความตั้งใจที่จะจัดตั้งและเปิดให้บริการ เพื่อช่วยปล่อยสินเชื่อในส่วนที่ธนาคารยังเข้าไม่ถึง ซึ่งในปัจจุบันภาพรวมสินเชื่อยังคงหดตัว ยอมรับว่าเป็นการหดตัวตามสภาวะเศรษฐกิจที่เติบโตได้ไม่มาก

Key Entities

Organization

Bank of Thailand(ธปท.)ℹ️

The central bank of Thailand, responsible for monetary policy and overseeing financial institutions, including the recent initiative to reduce bank fees and regulate virtual banks.

SMEℹ️

Small and Medium Enterprises, identified as a group that will benefit from the Bank of Thailand's fee reduction initiatives.

Virtual Bankℹ️

A type of digital bank without physical branches, for which the Bank of Thailand has issued licenses and is monitoring operational readiness.

Person

Vithai Ratanakorn(นายวิทัย รัตนากร)

Governor of the Bank of Thailand, who announced plans for bank fee reductions and provided an update on virtual bank development.