{"id":422269,"date":"2025-09-13T23:21:14","date_gmt":"2025-09-13T23:21:14","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/422269\/"},"modified":"2025-09-13T23:21:14","modified_gmt":"2025-09-13T23:21:14","slug":"vorapak-urges-shift-to-risk-based-pricing-to-tackle-thailands-informal-debt","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/422269\/","title":{"rendered":"Vorapak urges shift to risk-based pricing to tackle Thailand\u2019s informal debt"},"content":{"rendered":"<p><strong>Vorapak Tanyawong<\/strong>, former CEO of Krungthai Bank and a frontrunner for the post of deputy finance minister, posted on his personal Facebook page calling for an end to misapplied interest-rate caps on retail loans. He argued it is time to implement risk-based pricing (RBP) as a sustainable solution for informal debt.<\/p>\n<p>\u201cRisk-Based Pricing is the future of Thai lending: higher-risk borrowers can access credit, lower-risk borrowers pay less,\u201d he said.<\/p>\n<p>This concept is not merely a policy slogan. It represents a fundamental shift in thinking about financial fairness, which Thailand is beginning to pursue seriously under the Reinvent Thailand initiative, a new economic strategy for the country\u2019s future.<\/p>\n<p>&#13;<br \/>\n<strong>Signals from the Bank of Thailand<\/strong><\/p>\n<p>On September 12, 2025, the Bank of Thailand, Fiscal Policy Office, the Thai Bankers\u2019 Association, and three retail-lending providers held their first joint meeting to kick off the design of a risk-based pricing mechanism in Thailand.<\/p>\n<p>The meeting marked a turning point for the Thai lending system. RBP is not just about lowering interest rates for responsible borrowers. It also opens the door for previously excluded high-risk borrowers to re-enter the formal financial system fairly and sustainably.<\/p>\n<p>Previously, debates over interest-rate caps were seen as consumer protection. In practice, overly low caps, such as 25% per year, acted as a double-edged sword:<\/p>\n<ul>&#13;<\/p>\n<li>Lenders were unable to extend credit to high-risk borrowers.<\/li>\n<p>&#13;<\/p>\n<li>Many borrowers had no choice but to rely on informal lenders charging 60\u2013200% annually.<\/li>\n<p>&#13;<\/p>\n<li>The financial system could not build credit histories for a large segment of the population.<\/li>\n<p>&#13;\n<\/ul>\n","protected":false},"excerpt":{"rendered":"Vorapak Tanyawong, former CEO of Krungthai Bank and a frontrunner for the post of deputy finance minister, posted&hellip;\n","protected":false},"author":2,"featured_media":422270,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[47341,331,1500,51,1700,144352,24384,144353,56519,16,15],"class_list":{"0":"post-422269","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bank-of-thailand","9":"tag-banks","10":"tag-breaking-news","11":"tag-business","12":"tag-economy","13":"tag-fiscal-policy-office","14":"tag-household-debt","15":"tag-krungthai-bank","16":"tag-lender","17":"tag-uk","18":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115199560050398561","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/422269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=422269"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/422269\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/422270"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=422269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=422269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=422269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}