This content is not available in your region

Thai central bank to let banks invest more in fintech, eyes virtual banks

Thai central bank to let banks invest more in fintech
Thai central bank to let banks invest more in fintech   -   Copyright  Thomson Reuters 2022
By Reuters

BANGKOK – Thailand’s central bank plans to allow banks to invest more than a current limit of 3% of their capital funds in fintech, except in digital assets, an assistant governor said on Tuesday.

The Bank of Thailand (BOT) also expects to issue rules on virtual banks in the first half of the year, Roong Mallikamas told a news conference.

The introduction of such lenders are expected to increase competition in the system, while existing banks will also be allowed to apply, she said.

“Competition will stimulate changes to make it better for the public and business,” she said.

The BOT recently said it would regulate use of digital assets as payments due to risks.

The BOT on Tuesday released a consultation on Thailand’s financial sector and the digital economy and will seek public opinions until Feb. 28.

“Innovation is good… but not every innovation is useful and good, and that needs risk management,” BOT Governor Sethaput Suthiwartnarueput told the conference.