Bank of Thailand Tackles Four Financial Crises Amid Slowing Growth

Bank of Thailand Governor Veerathai Santiprabhob outlined the central bank's approach to addressing four financial challenges threatening Thailand's economic growth and stability. The Bank of Thailand's primary mission of maintaining macroeconomic stability remains unchanged, Veerathai said, and while inflation and financial system risks have diminished significantly, Thailand's real problem now lies in slowing economic growth and declining growth potential due to structural issues. He warned that without decisive action, prolonged slow growth will reduce business and household incomes, eventually leading to rising non-performing loans that will undermine macroeconomic stability.

Veerathai questioned the value of achieving financial stability if the economy continues to deteriorate, businesses close, and poverty increases. To address this, the Bank of Thailand will focus on four financial matters within its mandate: resolving household debt, improving financial inclusion for SMEs and small borrowers, ensuring fair-priced financial services for low-income earners and SMEs, and preventing financial channels from facilitating corruption and illicit transactions. The central bank will also increase oversight of non-bank lenders and payment systems, as risks of consumer exploitation and irregular transactions through these channels have grown.

"When risks change, the Bank of Thailand must adapt," Veerathai said. "If we don't evolve, we can't fulfill our duties fully. While staying in the past might be easier and more comfortable, the Bank of Thailand is fortunate to have talented, energetic people with good values who refuse to be stuck in old ways. I want to invite everyone to work together and help our country improve."