Bank of Thailand has announced it is planning to launch virtual banks by 2025, according to a report by Bloomberg. The move is aimed at increasing competition and boosting Thailand’s economic growth.

According to the central bank, regulations surrounding virtual banks will remain the same as those for traditional banks. In addition, virtual banks will be prohibited from engaging in a race to the bottom, such as giving preferential treatment to certain groups and abusing its powers.

Virtual banks will be under a “restricted phase” during their first few years of operation, the central bank said, which entails close monitoring to ensure there are no systemic risks.

Author: Katie Lin