BANGKOK, November 6 – The Thai National Bank (TNB) has announced a public hearing to gather feedback on a draft proposal by the Credit Information Protection Committee. This proposal aims to expand credit bureaus’ ability to manage and use certain personal data to streamline debt resolution, signaling an urgent government-led push to address Thailand's mounting debt crisis.
The plan would authorize credit bureaus to process personal data, such as names and identification numbers, for individuals opting into the debt resolution policy, provided they meet specific conditions. In collaboration with the Ministry of Agriculture and Cooperatives—among other agencies—the TNB has devised a strategy to ensure that only individuals committed to avoiding new debt will be included in this initiative. This policy is intended to stabilize debt levels within government-backed savings cooperatives and to improve financial responsibility among debtors.
Scheduled for finalization on December 19, 2023, the draft proposal emphasizes cooperation across ministries and financial bodies to create alternative repayment structures. The Ministry of Culture and numerous savings cooperatives, key creditors within this framework, are being called upon to offer support and develop sustainable debt reduction programs.
However, there’s a caveat: only credit information companies and financial institutions that are members of the credit bureau system will have access to this data. This restriction excludes most savings cooperatives, which are not bureau members, from directly sharing debtor information under the new scheme.
This move also aims to support government policy, which the Credit Information Protection Commission (CCC) plans to oversee under Section 16 of the Credit Information Business Act B.E. 2545 and subsequent amendments. The Department of Cooperative Promotion will play a key role in managing and forwarding the data of debtors participating in this debt relief program.
One critical condition is that participating debtors must agree to refrain from incurring additional debt within the cooperative system, which allows credit bureaus to assess their financial behavior and generate reports on their credit standing. The TNB emphasized that such information sharing would only occur with explicit debtor consent, thus ensuring transparency and individual privacy.
Analysts Weigh In on Cultural and Societal Impact
Analysts in cultural and societal fields see the move as a significant step for Thailand, where debt has often been managed within local communities, particularly in rural cooperatives. By integrating modern credit management practices with traditional cooperative structures, the initiative may encourage more responsible borrowing behaviors. The policy aligns with broader cultural shifts toward financial transparency and accountability in Thailand, especially as debt becomes a pressing social issue affecting families and communities nationwide.
On the societal front, the policy could foster a more stable financial environment, especially for low-income groups that rely heavily on savings cooperatives. However, the restriction on cooperatives’ data-sharing abilities with credit bureaus may hinder the full impact of these reforms, potentially limiting debt resolution options for those who are outside the credit bureau network.
The TNB’s public hearing reflects Thailand’s commitment to addressing the debt issue collaboratively and responsively, and it marks an important step in reshaping the financial landscape for future economic resilience.
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