Bank Of Thailand Mull Virtual Banks By 2025
The Bank of Thailand has announced plans to allow virtual banks to operate in the country. According to a Bloomberg report, financial firms will be able to provide services by 2025.
According to the central bank’s “Consultation Paper on Virtual Bank Licensing Framework,” applications allowing virtual banks to act as financial service providers will be available later in 2023. The move aims to boost Thailand’s economic growth by increasing competition.
By 2024, the Bank of Thailand will issue three different licences to interested companies. According to the report, at least ten parties are interested in granting permissions.
Under the licencing framework, virtual banks will be subject to the same regulations and supervision as traditional commercial banks. Furthermore, qualified applicants must meet certain requirements. “Virtual banks should not initiate a race to the bottom through irresponsible lending, give preferential treatment to related parties, or abuse dominant market position, which will pose risks to financial stability, depositors, and consumers overall,” the central bank added.
Virtual banks will be subject to a “restricted phase” during their first years of operation, according to the central bank, which will include close monitoring to prevent financial systemic risks. Thailand’s Securities and Exchange Commission recently announced plans to tighten crypto regulations in order to increase investor protection. The authority is also developing a strict set of guidelines for crypto ads.
(With inputs from Shikha Singh)
You need to login in order to Like
