Financial institutions are expected to report their environmental loan strategies and related targets to the Bank of Thailand (BoT) as the country attempts to transition to a green economy. According to Roong Mallikamas, central bank's assistant governor stated that the bank would require financial institutions to report their business strategies and targets regarding environmental-related loans from next year. The move is intended to support a green economy using the financial sector. Additionally, the central bank plans to implement guidelines and standard practices for green loans to encourage banks to expand such lending and help small and medium-sized enterprises (SMEs) adjust their business. Moreover, the development will also help Thai financial institutions meet international standards and improve their credit ratings, which should lead to lower fundraising costs.

Source: Bangkok Post