Finance Ministry, BOT to allow virtual banks to open within one year
The Ministry of Finance and Bank of Thailand has announced regulations that would enable, for the first time, the opening of virtual banks in the kingdom.
Published in the Royal Gazette on Monday, the new Ministry of Finance regulations would see the opening of “branchless” banks. The new banks are scheduled to be operational within one year.
The Finance Ministry says the measure aims to reach sectors of the economy underserved or unserved by traditional banking services. Applicants must demonstrate sufficient experience and resources to run a commercial bank. Applications can be sent to the Bank of Thailand.
According to the new regulations, the virtual banks must be headquartered in Thailand with registered capital of 5-10 billion baht.
Additionally, the Ministry said that there would be no limit on licenses approved but that licensing will ultimately fall to the Bank of Thailand which will evaluate the macroeconomic landscape and what is appropriate for Thailand.
“Allowing virtual banks go in line with the government’s policy to promote the digital economy and improve its infrastructure,” said Pornchai Thiraveja, the Ministry of Finance spokesperson.
The Ministry’s hope is that virtual banks would provide additional options for citizens as well as accelerating the transition to a digital economy, Pornchai added.
Prime Minister Srettha Thavisin last week shared his plans to turn Thailand into a ‘hub’ for eight sectors, with finance and the digital economy among them. His government aims to develop the “Wall Street of ASEAN”.
