Vorapak Tanyawong, 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
\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
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
\nSignals from the Bank of Thailand<\/p>\n
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
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
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
\n\tLenders were unable to extend credit to high-risk borrowers.
\n\tMany borrowers had no choice but to rely on informal lenders charging 60\u2013200% annually.
\n\tThe financial system could not build credit histories for a large segment of the population.
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