Bank of Thailand Moves to Cut Banking Fees, Easing Burden on Citizens and SMEs Starting This July

The Bank of Thailand is pressing ahead with cuts to banking fees to reduce the burden on individuals and SMEs, with effects expected to take hold in July this year. Bank of Thailand Governor Vithai Ratanakorn disclosed that the Bank of Thailand is currently soliciting feedback on restructuring banking fee schedules to lower certain charges. Final impact assessments are expected to be completed this May, with official implementation anticipated in July or possibly within 2-3 months thereafter, depending on circumstances. This will ease financial pressures on retail customers and SMEs. Regarding progress on establishing virtual banks—with three entities having received licenses—preliminary assessments suggest two virtual banks could be ready to commence operations by year-end. Licensed operators must establish internal systems, IT infrastructure, risk management procedures, and complete organizational structures before launching official services. If unprepared, they may request extensions under existing criteria. Given the complexity of establishing a bank, extensions are permitted. Operators are scheduled to begin setup and launch services by June this year, but those not yet ready can request an additional one-year extension or until June 2027. Regarding ongoing news developments, all virtual banks are believed to be making genuine efforts to comply, though the Bank of Thailand must assess what is appropriate and submit recommendations to the Finance Ministry for further consideration. All virtual banks are believed to be committed to establishing operations and providing credit services in areas traditional banks have not yet reached. The overall credit landscape continues to contract, a contraction attributed to slower economic growth.