BOT Governor expresses disappointment over legal delays and SME loans

Prachachat•Politics•14m ago

Reader Briefing

Somchai Sajjapong, Chairman of the Bank of Thailand, expresses disappointment over the failure to update laws and the decline of SME loans.

•Somchai Sajjapong assumed his position on June 2, 2025.
•Commercial bank loans to SMEs have experienced negative growth for nearly 17 quarters.
•Only one section of the Financial Institution Business Act has been proposed for amendment after 1 year and 6 months.
•Cash withdrawals under grey capital measures dropped over 57% and actual gold withdrawals dropped over 85% compared to January 2026.

Overview

•Somchai Sajjapong took office as Chairman of the Bank of Thailand on June 2, 2025.
•Somchai Sajjapong stated that the failure to update the Financial Institution Business Act, the Bank of Thailand Act, and the Currency Act is a failure that will damage the country's financial economy.
•Somchai Sajjapong noted that commercial bank loans to SMEs have seen negative growth for nearly 17 quarters, a record for ASEAN countries.
•Somchai Sajjapong reported that while SME Credit Boost and Secure+ measures have been implemented, YourData/Open Data, Data Bureau, and SME Credit Portal measures have not yet occurred.
•Somchai Sajjapong suggested commercial banks may avoid SME loans due to high risk, internal policies, or excessive strictness in consideration processes.
•Somchai Sajjapong observed that the decrease in grey capital transactions may be due to 'structuring,' where transactions are split to avoid reporting thresholds.
•Cash withdrawals decreased by over 57% and gold withdrawals by over 85% compared to January 2026, according to a statement dated October 29.

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Source: Prachachat (Original)

Key Quotes

Somchai Sajjapong

"These measures are only necessary measures, not sufficient measures. I ask myself if the Bank of Thailand has only these measures and tools to solve this problem."

มาตรการเหล่านี้เป็นเพียง neccessary measure ไม่ใช่ sufficient measure ผมถามตัวเองว่าแบงก์ชาติมีมาตรการและเครื่องมือเท่านี้เหรอในการจัดการแก้ไขปัญหานี้

Key Entities

Person

Somchai Sajjapong(สมชัย สัจจพงษ์)

Chairman of the Bank of Thailand who assumed office on June 2, 2025.