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Thai central bank to extend code of conduct to state lenders

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Thai central bank to extend code of conduct to state lenders

Thailand's central bank will expand the scope of market conduct rules to cover state banks and nanofinance business, The Nation reported, citing Jaturong Jantarangs, assistant governor for supervision group 1.

Currently, the rules only apply to private banks. The market conduct rules are aimed at ensuring that banks are under sound management for the protection of clients. The Bank of Thailand has already informed state banks that they will be subject to the same criteria as commercial banks.

The Bank of Thailand is also planning to grant individual banking agent licenses for basic financial transactions, the Bangkok Post reported Oct. 14, citing a consultation paper from the central bank.

The move is aimed at broadening financial access to customers. The central bank will allow individual banking agents to offer basic financial services such as money and loan withdrawals. Allowing such individual agents to offer financial services will provide more consumer inclusion particularly for customers in remote areas.