Ahead of the upcoming International Monetary Fund (IMF) and World Bank annual meetings from 13 to 15 October at the Queen Sirikit National Convention Center in Bangkok,
a Bloomberg columnist, likely joining the global ranks of reporters, analysts, and financiers covering the event, wrote an insightful critique of the work of Bank of Thailand Governor Vitai Ratanakorn, stating...
Mr. Vitai stands apart from the traditional image of a central bank governor to the extent that he has been nicknamed “Activist Central Banker.” This refers to a central bank governor who takes a proactive role, not limiting himself to overseeing financial stability...
such as setting interest rates, controlling inflation, managing the currency, and maintaining the stability of financial institutions, but also actively engaging in solving structural economic problems directly affecting the Thai people, in cooperation with the Ministry of Finance and the Thai government.
Daniel Moss, an economic analyst whose article appeared on Bloomberg Opinion in The Business Times and other international media, contrasts Governor Vitai’s approach with that of U.S. Federal Reserve Chairman Kevin Warsh, who emphasizes limiting the central bank’s role to core duties like price stability and inflation control.
In contrast, Vitai believes that given Thailand’s high household debt, shrinking credit, difficulties for small and medium enterprises (SMEs) in accessing financing, and declining growth potential,
the Bank of Thailand should not simply act as a rule enforcer but must use its available tools to address problems more directly and effectively.
This perspective is reflected in his desire for the central bank to be closer to the people, including targeted measures to alleviate debt, increase credit access, and ensure the financial system effectively channels funds to the real economy.
Traditionally, central banks have been seen as controllers of inflation, currency guardians, and protectors of commercial bank stability, but Vitai looks further: if households are overburdened with debt, small businesses lack liquidity, and many people cannot access formal credit,
even with low inflation figures, the economy cannot be considered truly stable.
Therefore, under Vitai’s leadership, the Bank of Thailand tends to implement proactive and targeted measures alongside interest rate policies to assist affected groups directly, rather than relying solely on interest rate cuts that may unevenly distribute benefits.
Vitai’s experience managing commercial banks and Government Savings Bank, where he promoted it as a “bank for society,” gives him practical insights into the challenges faced by debtors, small entrepreneurs, and grassroots people, distinguishing him from governors who rose directly through central bank ranks.
Another point of interest among foreign analysts is the relationship between the Bank of Thailand, the government, and the Ministry of Finance.
Vitai has shown readiness to coordinate monetary and fiscal policies in the same direction to solve economic issues without sacrificing the central bank’s independence—a topic often controversial in past eras when governments sought financial support from the bank.
Such collaboration helps reduce conflicts between government and central bank and strengthens economic policies, especially when Thailand faces financial and fiscal constraints, avoiding the time lost to past disputes.
Daniel Moss’s article also notes that Vitai is striving to reshape the Bank of Thailand’s role and image to be “grounded” and more connected to the people’s problems—in other words, an effort to bring the central bank down from the “ivory tower.”
Vitai’s initiatives are proactive, including reducing fees that commercial banks charge customers, which could cut their profits by about 15 billion baht annually.
Measures also target curbing illicit capital flows, suspicious financial transactions, and controlling futures gold trading, such as requiring registration of buyers purchasing over 5 million baht worth of gold daily.
He has tightened regulations on non-bank financial businesses, especially Buy Now, Pay Later (BNPL) services.The Bank of Thailand found that 45 percent of BNPL users were youths aged 18 to 20, incurring debt beyond their repayment capacity unknowingly, often while still dependent on parental support and attending school.
Efforts are also underway to reduce inequality in credit access for the public and small entrepreneurs.
Thailand has lost much of its economic dynamism, appeal, and investment attractiveness it once had, while neighboring countries like Vietnam, Malaysia, and Singapore have expanded more robustly.
Being an “activist central banker” is therefore crucial in the 21st century, particularly in addressing Thailand’s structural challenges such as outdated economic engines, low productivity, and unequal access to financing for small businesses.
The phrase that Thailand is “aging before becoming wealthy” is not just a slogan, but clearly reflects the current demographic and economic structure: the working-age population is shrinking, the aging society is expanding rapidly, yet productivity and per capita income remain insufficient.
If growth potential continues to decline, government revenues will not suffice to support the elderly, while the working population must bear increasing debt and social burdens.
Moreover, shocks from rising oil prices and Middle East conflicts increase production costs and living expenses, further straining an economy still recovering from the COVID-19 crisis.
This explains why the central bank should not stand aside, claiming such issues are not entirely its responsibility, but should push for solutions within its mandate.
However, stepping beyond traditional roles as Vitai advocates, under the slogan “Stand Firm, Look Far, Reach Out, Stay Grounded,” must be done cautiously. If successful, the Bank of Thailand will become a vital driver of economic recovery.
If it oversteps its authority, many express concern that the central bank could shoulder excessive burdens and risks beyond what is appropriate.
In truth, at this time, nothing is more worrisome than the current economic condition visible today.