F. Amend rules to assist capital market development. Because commercial
banks are the biggest investors and market makers in the local capital market, the
Bank of Thailand is considering amending rules and regulations to allow commercial
banks a broader and more in-depth role in enlarging distribution channels and
increasing liquidity of the capital market.
Section 2. Rationalizing Structure and Roles of Financial Institutions
The FSMP aims to enhance efficiency and competition within the system by
reforming the licensing regime to lessen regulatory arbitrage and overlapping scopes
of business. This translated to the creation of only two types of deposit-taking
institutions with one designed specifically for filling the gaps in services for low
income and small cap companies. At the same time, the new regime will allow foreign
players to have a bigger role in the Thai financial system by providing such players
with the opportunity to establish presence in Thailand either as a branch or subsidiary