Vitai Ratanakorn has broken from the mold of traditional central bankers since becoming governor of the Bank of Thailand in October 2025. More outspoken than his predecessors, he has pushed the central bank to address structural issues such as household debt, financial exclusion, and illicit capital - areas typically left to other institutions.
During a discussion at the Bank of Thailand's headquarters, Vitai emphasized that stability alone is not enough. "If the economy is doing badly, people are getting poorer and businesses are closing, you can't say that has nothing to do with us," he said.
Vitai acknowledges that conventional monetary policy has limits. "Cutting interest rates can stimulate demand, but it can't fix the economy's declining potential growth," he noted. Instead, he has directed the central bank to tackle structural problems directly, focusing on four key areas: household debt and non-performing loans (NPLs), financial inclusion, fair interest rates and fees, and illicit capital.
Under his leadership, the bank has launched 15 projects in 10 months, with five more planned. These include stricter monitoring of large gold trades and cash deposits. Vitai clarified, "What I'm doing is not entirely new. "I'm simply doing much more of it, and in some areas going further than before"."
Vitai's approach has drawn criticism from some who believe central banks should stick to traditional roles. Somchai Jitsuchon, a former member of the bank's rate-setting committee, argued that the Bank of Thailand should act as a "defender, the nation's last line of defense," not a "striker."
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Bandid Nijathaworn, a former deputy governor, also questioned whether the bank risked overstepping its mandate. Vitai responded on Facebook, stating that while the bank's responsibility for economic stability remains unchanged, the nature of threats to that stability has evolved.
Vitai's expanded focus could signal a shift in how central banks address economic challenges. His initiatives aim to address deep-seated issues like financial exclusion and corruption, which traditional rate cuts cannot resolve.
For now, the Bank of Thailand continues to prioritize stability while venturing into structural reforms. Whether this approach succeeds may influence other central banks facing similar challenges.
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