Thailand will not restrict the number of digital banking licences, but virtual lenders must have at least 5 billion baht (US$115.43 million) of paid-up capital initially and double it to 10 billion baht within five years, according to a report in the Bangkok Post, citing a top aide to Finance Minister Arkhom Termpittayapaisith.
The government will leave it to the central bank to consider an “appropriate quantity” of digital banks, says Paopoom Rojanasakul, secretary to the finance minister.
“The initial plan was to limit the number of licences issued to three. However, the final decision was to have no restrictions on the number of licences, as the ministry wants to open the process to qualified applicants, allowing the Bank of Thailand to consider an appropriate quantity that stimulates competition without jeopardising the stability of the financial system,” he is quoted as saying in the news report published on March 6.
Digital banks must also set up headquarters in Thailand, and the government will allow joint ventures “to combine specific expertise”, he says.
According to Paopoom, virtual banks will concentrate on providing financial services to those without regular income, small and medium-sized enterprises, underserved and unserved groups, and people without access to credit.
Spokespersons for the finance ministry did not immediately respond to questions from Asia Asset Management.