Sunday, 14 July 2024

Best Conduct of Business Regulator in Asia Pacific is Bank of Thailand

5 min read

By The Asian Banker

The Bank of Thailand (BOT) published guidelines for the development of payment systems in line with the new financial-sector landscape of the country in 2022. The guidelines allow greater business scope and flexibility for both bank and non-bank financial institutions, as well as new entrants to the market under risk-based supervision. 

The BOT has also issued additional measures to fight financial fraud and protect consumers. All financial institutions must follow the same minimum standards to prevent, detect and respond to fraudulent financial activities to better manage financial fraud. Together with the Ministry of Finance and the Thai Bankers Association, the BOT created PromptPay, a domestic real-time peer-to-peer payment system under National ITMX. 

Now, National ITMX and PromptPay have set up d cross-border real-time QR payments with six countries—Cambodia, Indonesia, Japan, Malaysia, Singapore and Vietnam—that they claim is the largest network of cross-border direct real-time payment linkages in the world.  

Also noteworthy, is the widespread adoption of the Pao Tang government wallet (G-wallet), that was launched by state-owned Krungthai Bank amid COVID-19 to channel government financial support to the low income and underbanked population, including small merchants and business owners. It has reached about 50 million users, believed to be as high as 97% of the targeted segments.

The BOT has encouraged the financial sector to use technological advancement to drive innovation and provide inclusive financial services and consumer protection. It spared no efforts to develop Thailand’s payment systems amid new challenges and risks. It successfully collaborated with relevant stakeholders to speed up the transition to a more digital and sustainable economy. 

For its achievements, the award for Best Conduct of Business Regulator in Asia Pacific goes to Bank of Thailand.

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