Non-bank players have also been aggressively competing for market share in the personal loan and credit card market, although with focus on people in the lower range of income groups. Considerable amount of investment has been made to revolutionize network channel, operational process, and risk management system in order to reduce the operational cost and service delivery time, and to manage risks more effectively. Functionalities of traditional delivery channel such as ATM have been greatly expanded, while new e-banking tools such as internet banking, mobile banking, and electronic money service have been introduced. Use of ATM, debit and credit cards continues to grow steadily, whilst internet banking transactions and use of electronic money services increase markedly both in terms of the number of users and the value of usage. Modernization of operational process and risk management system includes automating application process, credit approval process, and increasing use of credit scoring models and credit information system. Ladies and Gentlemen, We view increased competition and innovation in the retail banking business as beneficial to consumers and the financial system as a whole. Banks’ loan portfolios have become more diversified, while a greater number of people have been given access to financial services. Many of you will recall that one of the primary objectives of the Bank of Thailand’s first Financial Sector Master Plan was to broaden access to financial services for the underserved segments of our society, including people in the lower income group, in the rural areas, and small and medium-sized companies.

A minimum loan-to-valuation ratio was also introduced to stem the incipient growth of high-priced residential loans that, if left unchecked, could have led to speculative property bubbles and threat to financial and economic stability down the road. Maintaining financial stability is another all-important policy objective for us as the central bank. In fulfilling that objective, it is imperative that we remain vigilant on developments which might lead to financial imbalances – such as excessive household debt and asset price inflation – and take timely action, including prudential measures, to prevent them from becoming a threat to the financial system and the economy. Ladies and Gentlemen, Another dimension of our policy towards the retail banking business is to ensure that customers are treated fairly, that they are provided with clear and complete information about the product and price before and after the sale, and that they are given sound advice which takes into account their needs and circumstances. In this connection, we have put a ceiling on interest rates on personal and credit card loans. We also require transparency and disclosure of interest rate calculation and fees that banks charge their customers. We have provided guidance to banks regarding appropriate procedures to handle customer complaints as well as fair debt-collection practices. We have also been working to improve the information available to the general public on our new website that we hope would help to facilitate consumer education and raise the level of financial literacy.