Vitai Ratanakorn has spent 11 months as Governor of the Bank of Thailand (BOT), undertaking a mission to bring the 'central bank' down from its ivory tower, stirring ongoing public interest across Thailand.
Under the BOT's shared core values—'Stand Straight, Look Far, Reach Out, Stay Grounded'—which were conceived and officially embedded into the Bank's culture during former Governor Tharit Wathayakorn's term from 2006 to 2010, this approach has guided successive BOT governors, each emphasizing different aspects of these pillars.
Governor Vitai's tenure continues along the same path but places greater emphasis on the last two pillars: 'Reach Out' and 'Stay Grounded.'
Specifically, Vitai emphasizes the Bank's readiness to reach out to assist society, coordinate with public and private agencies, and devise measures to alleviate public hardships, viewing this as part of the BOT’s role in addressing accumulated structural economic problems to the best of its ability.
The current BOT has introduced novel and advanced measures beyond those of its predecessors, seeking ways to use existing regulations to extend oversight into structural economic issues, grey capital, scammers, and money laundering—major threats to Thailand's financial system today.
Notably, the BOT has taken regulatory control over online gold trading platforms, which affect the Thai baht exchange rate. Following these measures, large-scale gold trades with unclear origins have significantly declined.
The BOT has also ordered commercial banks to intensify scrutiny of cash withdrawals and distribution of small-denomination bills—from 5 million baht upwards—measures that coincided with the general election period. This oversight has since expanded to cover cash deposits over 5 million baht. If cash transactions cannot be explained, customers are encouraged to use transfers instead, greatly reducing opportunities for corruption or money laundering. Recently, the BOT extended its regulatory tools to oversee digital asset management.
Regarding macroeconomic management, Governor Vitai affirmed his readiness to use monetary policy to 'support' the Thai economy, including implementing measures to resolve non-performing loans and to enhance SME access to credit through initiatives like the Quick Debt Settlement program, SMEs Credit Boost, and SME Secured Plus, which allows land as collateral.
However, in economic circles, 'every coin has two sides.' Every story, theory, or action carries both advantages and concerns. The BOT's unexpected 'leap from the ivory tower' has been widely praised for the governor’s courage to do what many hoped the BOT would have done long ago.
At the same time, this transformation has raised concerns about the BOT's core mission to uphold stability as the 'final bulwark' against instability and potential economic crises in Thailand.
Recently, Governor Vitai posted on his personal Facebook page, Vitai Ratanakorn, sharing his thoughts on the Bank’s mission, stating that the BOT continues its core mandate of maintaining macroeconomic stability, which has never changed. He noted that risks to price and financial system stability have greatly diminished—pre-war inflation was even negative.
The Bank's financial performance and capital strength are very robust, perhaps even excessively so. Yet Thailand's current problem lies in slowing economic growth and declining potential, caused by many structural issues. If we only analyze problems and criticize others without acting, economic growth will slow further, businesses and citizens will earn less, and incomes will fail to meet expenses.
Ultimately, this will lead to rising non-performing loans and will circle back to impact macroeconomic stability.
"What good is it if the Bank achieves stability goals but the economy keeps worsening, businesses close, and poverty increases? I emphasize again that the Bank's core mission to maintain macroeconomic stability remains unchanged. But since today’s world is very different from the past, the Bank must focus on taking action to solve structural problems," Vitai said.
The BOT's approach to structural problem-solving focuses specifically on four financial-related areas:
All of these fall within the Bank's statutory duties as specified by law. In fact, the BOT has already been addressing these areas to some extent. Going forward, it will increase oversight of non-bank entities in lending and payments due to rising risks of exploitation and illicit transactions.
"As risks change, the Bank must adapt. Without change, it cannot perform effectively. While staying the same might be easier, fortunately, the Bank is an organization willing to adapt, with many talented, energetic, and well-intentioned people. We don’t want to remain stuck in an old world of criticism and image-building without tangible achievements. I invite everyone to join us in truly working together to improve the country," Vitai said.
Having followed the BOT’s work since before the 1997 Asian financial crisis and observed its highs and lows, I understand both perspectives. But amid rapid global changes in economic rules and geopolitics, the Bank cannot stand still or avoid aiding the country. Nonetheless, it is important to recognize the value of constructive criticism that aims to build.
On 18 August 2015, Dr. Prasarn Trairatvorakul, former BOT governor, delivered a special Governor’s Talk titled “A Letter from the Heart to Professor Puey: The Science and Art on the Five-Year Path of the Bank of Thailand Governor” commemorating the 100th birth anniversary of Professor Dr. Puey Ungphakorn.
He described the central bank’s mission as maintaining stability alongside development.
Professor Puey once said about “the science of governance” that the objectives under the central bank’s responsibility are twofold: 1. To promote smooth economic operations and 2. To maintain financial stability alongside economic development.
"Sir, changing economic and social conditions require the central bank to adjust its methods to align with societal context and expectations. Some operational methods are based on solid academic principles (science), but others are not. Practice may differ and become an art, as you once said, 'The art of practice involves deciding what to do... which cannot be taught,'" the former governor said.
From any perspective, the answer lies in the shared core values—'Stand Straight, Look Far, Reach Out, Stay Grounded'—that the Bank is following. But it requires finding a new balance to build a refreshed BOT culture that steadfastly upholds principles to maintain economic stability and help Thai people live well.
It is believed that Governor Vitai understands this deeply and is highly committed. When the time comes, we should see a 'new era BOT' that meets everyone’s expectations in the near future.
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