Finance companies have until mid-year to submit plans on whether they will upgrade to a full-service or retail banking licence or risk being marginalised as a credit company with a sharply restricted scope of operations. Foreign banks are similarly weighing their options under a directive to consolidate their Thai operations based on the "single presence" concept.
Overall, regulators expect the financial sector to shrink by half to around 40 entities over the next several years.
"It's not old wine in a new bottle," says Tarisa Watanagase, the deputy central bank governor overseeing the financial institutions stability group.
The master plan will not only create a level playing field for all players, it will also help lead to a wide restructuring, where the current mishmash of different operating licences is reduced to just two, retail and full-service banking licences.
