Bangkok,, The BoT clarifies conditions for setting up a Virtual Bank. Applications for establishment can be made 20 Mar. - 19 Sep. 2024. Prepare to give a big clarification on 19 Mar., expecting to announce the names of those who should be allowed permission. A Virtual Bank can be established within the first half of 2025 and open for service within 1 year. Mr. Somchai Lertlapawasin, Assistant Governor Financial Institutions Policy Group The Bank of Thailand (BoT) revealed that on March 4, 2024, the Royal Gazette The Ministry of Finance has published an announcement on criteria, methods and conditions for applying for a license and issuing a license to operate a branchless commercial bank (Virtual Bank) to allow those with expertise in technology. Providing digital services and the use of various data Entering new financial services through digital channels To better meet the needs of each group of service users. Especially retail users and small and medium-sized businesses (SMEs) who still do not receive fi nancial services that are sufficient or meet their needs. Create a better experience in using financial services for service users. As well as helping to stimulate appropriate competition in the Thai financial institution system. without causing any risk to the stability of the financial system or cause damage to the interests of depositors or service users at large. In order to get a Virtual Bank that creates sustainable benefits to the Thai economic and financial system according to the above goals, the BoT will consider the request for permission. Emphasis is placed on the qualifications, potential, and abilities of applicants for permission to operate a Virtual Bank business according to the proposed model and plan, both in terms of (1) experience, resources, and ability to operate a Virtual Bank business by offering financial services. A new format that better answers the needs of each group of service users (2) good governance and the ability of applicants for permission and those holding important pos itions in the Virtual Bank (3) expertise, experience, and ability to operate Businesses that use technology and provide services through digital channels. (4) Ability to use and manage information technology systems that are flexible, stable, secure, and able to provide services continuously. To support the development of financial services that flexibly respond to the situations or needs of service users. (5) Experience and ability to acquire, access, manage, and utilize a variety of data. Including the development of systems or data interfaces to facilitate service users to be able to use their data in transactions with other service providers under legal rights. (6) Ability to manage data. risks related to the financial business and (7) the ability to provide adequate financial support for the continued operation of the Virtual Bank business by key shareholders. In addition, the BoT will consider the existence of a new commercial bank with potential. and ability in an amount appropriate to the financial i nstitution system in Thailand This will help stimulate competition for the benefit of depositors, service users, and the Thai financial economy as a whole. without causing any risk to the stability of the country's financial system Those interested can submit an application for permission to establish a Virtual Bank to the BoT from March 20, 2024 to September 19, 2024. You can study details about submitting a permission request at the BoT website and the BoT will Organize an clarification meeting for those interested in submitting permission applications on March 19, 2024 to clarify the details of the Ministry of Finance's announcement. As well as the supervision criteria for the Virtual Bank, those interested in submitting applications will be informed clearly, completely and equally. Those interested in attending the said clarification meeting can study the details and register to attend in advance at the BoT website from now until March 13, 2024. It is expected that the names of those who deserve it will be announced. The establishment of a Virtual Bank is permitted within the first half of 2025 by the applicant who has received approval from the Minister of Finance. Must prepare in various areas such as information technology systems and related risk management tools. To be able to open for business within 1 year. Source: Thai News Agency