Thai central bank plans licensing framework for digital banks

The central bank of Thailand plans to introduce a licensing framework for virtual banks, as these institutions are expected to offer financial services through digital channels.

On Jan. 12, the Bank of Thailand released a consultation paper on the framework for virtual banks to operate as full-service banks and accommodate changing customer needs.

A virtual bank must conform to the same regulations as a traditional commercial bank and meet certain requirements, including business models that can sustainably achieve their objectives, as well as expertise in technology, digital services and data management.

Additionally, digital banks will have to go through a restricted phase during their first few years of operation and be closely monitored.

Public consultation on the licensing framework will run until Feb. 12.