The challenge ahead for Vitai Ratanakorn as new Governor of the Bank of Thailand
Vitai Ratanakorn faces a crucial challenge as the new Governor of the Bank of Thailand. Can he balance independence with economic stability and social responsibility?
After weeks of uncertainty surrounding the new Governor of the Bank of Thailand (BOT), following Sethaput Suthiwartnarueput's impending departure at the end of September, the Cabinet has officially approved the appointment of Vitai Ratanakorn, the President of Government Savings Bank (GSB), as the new BOT Governor.
Vitai is widely recognised for his proven track record, but attention is focused on his vision and independence in formulating monetary policy free from political influence. Both domestic financial circles and international investors are keen to see how he navigates this crucial role.
As a journalist who has followed Vitai's career, from his tenure as Secretary-General of the Government Pension Fund (GPF) to his leadership at GSB, one thing is clear: when Vitai believes a decision is not in the best interest of the organisation, even if it originates from political directives, he does not hesitate to challenge it. This professionalism is what sets him apart.
To reassure stakeholders, especially those still uncertain about his transition to the role of BOT Governor, Vitai must demonstrate his professionalism and integrity in his new position.
During his candidacy for the role, Vitai outlined his vision for the BOT, emphasising the need for the Bank of Thailand to maintain independence, but also to ensure that such independence does not lead to isolation. He stressed the importance of collaboration with key stakeholders, such as the Ministry of Finance, commercial banks, and economic agencies like the BOI to ensure sustainable economic recovery. Thus, his key challenge as BOT Governor will be to remain completely neutral while maintaining financial and economic stability.
One of Vitai's key achievements as GSB’s President was steering the bank towards becoming a "social bank", focused not on profit, but on creating a financial system that is accessible, fair, and addresses economic disparities, particularly for the marginalised. Despite this, the concept of a "social bank" may be difficult to apply at the BOT, given that the primary goal of commercial banks is to maximise returns for their shareholders.
Amid economic challenges and near crisis conditions, we agree that commercial banks should play a greater role in driving economic growth. We hope that the new BOT Governor can successfully balance this objective without jeopardising the long-term stability of the financial system. It’s undoubtedly a difficult task, but one that holds immense significance for the country’s future.
