\u00a0<\/p>\n
\u00a0<\/p>\n
The Bank of Thailand moves to close regulatory loopholes as the surge in \u2018invisible\u2019 BNPL debt threatens to undermine national financial stability.<\/strong><\/p>\n \u00a0<\/p>\n The Governor of the Bank of Thailand (BOT), Vitai Rattanakorn, <\/strong>has signalled a tightening of law enforcement and oversight for \u2018Buy Now, Pay Later\u2019 (BNPL) <\/strong>services, warning that the sector’s rapid growth poses a mounting threat to the country\u2019s financial system.<\/p>\n \u00a0<\/p>\n Under current Thai law, BNPL transactions are not technically classified as “loans”<\/strong>, meaning they operate outside the direct jurisdiction of the central bank.<\/p>\n \u00a0<\/p>\n However, the BOT has expressed concern that these services have evolved into a significant systemic risk that requires urgent intervention.<\/p>\n \u00a0<\/p>\n The central bank\u2019s primary concern is that BNPL debt currently exists “off the radar”<\/strong>.<\/p>\n \u00a0<\/p>\n Unlike traditional credit, these transactions are not reported to the National Credit Bureau, preventing a comprehensive assessment of household debt levels.<\/p>\n \u00a0<\/p>\n
<\/p>\n “We are beginning to see heightened risks from BNPL as transaction volumes surge,” Governor Vitai stated. “Because these businesses do not provide direct loans in a legal sense, they aren’t under BOT oversight. Our priority is to find a pathway to bring them under our supervision to close these structural loopholes.”<\/strong><\/p>\n
\n<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"\u00a0 \u00a0 The Bank of Thailand moves to close regulatory loopholes as the surge in \u2018invisible\u2019 BNPL debt…\n","protected":false},"author":2,"featured_media":241106,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[126988,79,632,4595,179,18,19,17,391],"class_list":{"0":"post-241105","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bank-of-thailand-bot","9":"tag-business","10":"tag-central-bank","11":"tag-e-commerce","12":"tag-economy","13":"tag-eire","14":"tag-ie","15":"tag-ireland","16":"tag-thailand"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115746716067004282","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/241105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=241105"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/241105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/241106"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=241105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=241105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=241105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}