UK Government & Bank of Thailand Sign Memorandum of Understanding for Strategic Partnership on Financial Services

UK Government and Bank of Thailand

The UK Government and the Bank of Thailand (BoT) have signed a Memorandum of Understanding (MoU), forming a strategic partnership on financial services to support Thailand’s inclusive economic recovery and green growth in line with the Sustainable Development Goals (SDGs).

Under the MoU signed on 7th August 2020, the UK and the BoT agreed to collaborate to strengthen accounting standards; to enhance corporate governance and transparency; to support the development of Financial Technology (FinTech) to facilitate greater access to finance and business opportunity for Thai FinTech industry; to promote sustainable finance, and to support resilience in the financial system.

The collaboration is enabled by the UK’s ASEAN Economic Reform and ASEAN Low Carbon Energy Programmes.

The collaboration will share strategic knowledge and expertise on new financing trends, regulatory practices, products and services. The partnership will seek to develop the financial sector to support inclusive growth with consideration for the wider implications of policies on the economy, environment – in particular risks from climate change – and those who are disadvantaged in society.

Speaking at the signing ceremony, Mr Veerathai Santiprabhob, Governor of the Bank of Thailand said “Financial technology can enhance financial inclusion by scaling up accessibility and convenience with product offerings that can be tailored to individual’s needs.

Technological advancement in financial services has prompted regulators to embrace an organizational culture that nurtures innovation. At the same time, worsening effects of climate change have impacted business operations and their credit quality which financial institutions need to pay close attention. Financial institutions should also play a role in minimizing negative externality from lending.

Our cooperation under this MoU will play an important role in supporting Thailand, in particular, the Bank of Thailand, to foster a regulatory framework that promotes agility and innovation while preserving financial stability as we pursue our journey of digital transformation.

In addition, it will facilitate financial service providers to better embed the concept of sustainability, particularly the environment aspect, into their organizational culture and business conducts.”

Mr Brian Davidson, the British Ambassador to Thailand, said “This Memorandum of Understanding comes at a critical moment as we seek to manage and recover from the Covid-19 pandemic.

Financial services can help deliver stimulus that will create jobs; support businesses, and empower societies to be more resilient by transforming economies from grey to green. But while we look to a green recovery, FinTech has been critical to the lives of so many during the pandemic – facilitating everything from government payments to the population to online deliveries.

Consequently, I’m very proud that we are signing this MoU with the BOT to facilitate cooperation through the Prosperity Fund ASEAN Economic Reform Programme and the ASEAN Low Carbon Energy Programme.”

The ASEAN Low Carbon Energy Programme is funded by the UK’s Overseas Development Assistance budget under the UK Government’s Prosperity Fund. The programme seeks to support ASEAN countries to transition to low carbon societies and realise economic and wider benefits as a result.

The ASEAN Economic Reform Programme is funded by the UK’s Overseas Development Assistance budget under the UK Government’s Prosperity Fund. It aims to support sustainable, inclusive economic development in ASEAN countries.

The programme focuses on a) strengthening the business environment through intellectual property enforcement, regulatory reform, and improved competition policy; b) improving transparency; and c) strengthening the financial sector through capital market development, FinTech capacity and accounting standards.

The programme runs from 2019 to 2022.