Payong Srivanich, Chairman of the Thai Bankers Association (TBA), announced that the Payment Systems Office (PSO) is collaborating with the Thai Chief Information Officer Association and the Digital Government Development Agency (DGA) to develop an ‘Open Loop’ system for digital wallet payments. Discussions are ongoing.
Chairman Payong stated that commercial banks are adopting stricter lending practices due to rising non-performing loans and defaults. Accelerating debt restructuring to help vulnerable groups return to regular customer status is crucial, and banks are actively working on this.
Bringing informal sector groups into the formal financial system is essential for providing access to funding. Alternative data for loan assessments, such as establishing Virtual Banks, is being considered. Krungthai Bank plans to apply for a Virtual Bank license by September 19th, as per the Bank of Thailand’s schedule.
In the construction and real estate sectors, delays caused by various factors, such as budget issues, have slowed progress.
The situation is expected to improve once the third-quarter budget is released. Krungthai Bank believes managing NPLs and non-performing assets internally is more suitable than establishing an Asset Management Company. (NNT)
