10 November, 2009
BOT pushes banks to do microfinance
Nov 09, 2009 (ASTV NEWS)
The Bank of Thailand (BOT) is strongly encouraging local banks to get involved in microfinance. The push is so strong that the BOT appears to be ready to give the banks a 3 year head-start. While the new microfinance regulations are only in draft form, banks have been given permission to start microfinance program without waiting for approval. New players must wait until 2012 before receiving permission.
Commercial banks in Thailand are being encouraged to look around the world and develop new programs that are currently in use in other countries. Programs in Bangladesh, India, Indonesia and Kenya were highlighted as good examples that could be transplanted into Thailand.
The BOT hopes that by making microfinance commercially available, strong competition will make organizations more efficient and effective...thus reducing overall costs for the borrower.
Source: ASTV News
The Bank of Thailand (BOT) is strongly encouraging local banks to get involved in microfinance. The push is so strong that the BOT appears to be ready to give the banks a 3 year head-start. While the new microfinance regulations are only in draft form, banks have been given permission to start microfinance program without waiting for approval. New players must wait until 2012 before receiving permission.
Commercial banks in Thailand are being encouraged to look around the world and develop new programs that are currently in use in other countries. Programs in Bangladesh, India, Indonesia and Kenya were highlighted as good examples that could be transplanted into Thailand.
The BOT hopes that by making microfinance commercially available, strong competition will make organizations more efficient and effective...thus reducing overall costs for the borrower.
Source: ASTV News
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