Thailand’s central bank is proposing an increase in banks’ investments into the financial technology (fintech) sector. At the moment, banks have a limit to invest 3% of their capital funds in fintech, except in digital assets. This restriction will be set to change in the near future.
Assistant governor to the Bank of Thailand (BoT) Roong Mallikamas highlighted the importance of competition for growth in both the public and business sectors. The introduction of the change will bring forward more investors, and hence a more competitive market.
The Bank of Thailand is also expecting to propose rules on virtual banks in the first half of 2022. It would specifically regulate the use of digital assets as payments due to risks.
“Innovation is good, but not every innovation is useful and good, and that needs risk management,” noted BoT Governor Sethaput Suthiwartnarueput.
Thailand’s central bank has released a consultation on the country’s financial sector and digital economy, and will continue to seek public opinions up until February 28 to better aid decision-making.
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