Thailand to issue virtual bank guidelines and allow fintech investments by lenders: report

BOT is aiming to issue the new guidelines by June.

The Bank of Thailand (BOT) is preparing to issue rules for setting up virtual banks, with the goal of issuing guidelines by June, a senior financial regulator said, reported Bloomberg.

BOT plans to issue the guidelines for digital banks by June and may allow existing lenders and new applicants to seek licenses, according to Assistant Governor Roong Mallikamas. 

The central bank is also poised to scrap limitations imposed on commercial banks that will allow them to invest in financial technology, except for digital assets.

“We expect to see more competition and innovations by allowing virtual banking and it will benefit depositors,” Roong reportedly said. “No one will stay still. Existing players will also adjust.”

Here’s more from Bloomberg.