Shifting roles to become a "defender" to strengthen the central bank.

“For over 28 years, I worked in the financial institutions sector, in a ‘front-line’ role. Recently, I’ve moved to a management role, a supportive ‘back-line’ role that assists policymakers. This is an opportunity to learn and adapt to a new, more challenging role.”

One of the executive restructuring changes at the Bank of Thailand (BOT) that took effect on October 1, 2568, was the promotion of... สุวรรณี เจษฎาศักดิ์ Previously held the position of Assistant Governor for Financial Institution Supervision, he was promoted to... Deputy Governor for Administration Suwannee is a long-time employee of the Bank of Thailand, having accumulated over 28 years of experience.

Suwannee graduated with a Bachelor's degree in Economics (First Class Honours) from Kasetsart University and a Master's degree in Finance & Banking from the University of Sydney. She then worked at the Bank of Thailand, primarily in areas related to financial institutions, including policy and supervision. Her current role in management marks a shift from a "front-line" role, where she played a key part in driving policies to assist the public, particularly through various household debt relief programs, to a new role as a "rear-line" member of the Bank of Thailand, overseeing everything from personnel and building management to technology systems.

Suwannee told me. "Bank Finance" I heard that he started working at the Bank of Thailand during the Tom Yum Goong economic crisis, which had... M.R. Chatumongkol Sonakul I was the Governor of the Bank of Thailand at that time, and many financial institutions were closed. Although it was a period with a heavy workload amidst a tense situation, it was an important experience that allowed me to train and learn about the process of resolving crises.

Suwannee recounted that at that time, she had the opportunity to transfer from the financial institution policy division to the debt restructuring division, a temporary task force established to address the non-performing loans arising from the 2540 financial crisis.

Upon completion of that mission, I returned to work in the financial institutions sector, responsible for policy setting and taking on additional important duties during the Bank of Thailand's (BOT) restructuring of the supervision of specialized financial institutions. My primary responsibility was overseeing and supervising specialized financial institutions such as the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives (BAAC), both of which are state-owned banks.

Following the Tom Yum Goong crisis, the Thai economy faced another global economic crisis in 2551, known as the Hamburger Crisis, and the COVID-19 pandemic in 2562.

Suwannee also explained that the COVID-19 crisis was one of the most challenging periods in her working life, and another time working under a crisis. This time, it pushed her to change her working methods, stepping away from her previous role as a "financial institution regulator" to become a full-fledged "policy maker," because she had to urgently implement measures to help various sectors more than she had ever done in the past.

“One of the measures implemented during the COVID-19 pandemic was the ‘recovery loan’ and the ‘asset warehousing’ program. This measure helped hotel operators who still had potential but needed time to recover from the impact of COVID-19, especially in the southern region. Operators reported that this measure prevented them from having their assets seized or being forced to sell their businesses to foreign investors who were waiting to snap up Thai real estate when prices were low at that time.”

Another project that helps debtors is "You Fight, We Help," which has received positive feedback from many debtors who have benefited from the program, such as debt consolidation (paying off the debt in full) or debt restructuring that helps them retain their homes and cars, which are important assets.

"Some measures may not generate outstanding statistical figures, but we are proud of them because, from listening to feedback, debtors have approached us saying that these measures helped them access debt resolution and received real assistance from creditors."

Switching roles to play as a "defender".
Focus on proactive work and be open to listening.

Suwannee described her new role, overseeing administrative affairs, as akin to a "rear guard" functioning to maintaining order and supporting the main functions (Front Office), which include financial stability and the stability of financial institutions.

Although the new role is challenging due to its difference from past experiences, it presents a significant opportunity to shift my mindset from my comfort zone to learning new things, especially by being open to listening to the team and brainstorming to create proactive collaborative work.

“For over 28 years, I worked in the financial institutions sector, in a ‘front-line’ role. Recently, I’ve moved to a management role, a supportive ‘back-line’ role that assists policymakers. This is an opportunity to learn and adapt to a new, more challenging role.”

Suwannee also stated that a key dimension of management is human resource development, which is considered a vital resource for the Bank of Thailand. The primary goal is to improve employee engagement within the Bank of Thailand, starting with the recruitment process and reducing turnover rates, especially among younger employees who are more likely to change jobs. Continuous development is crucial once employees are hired to retain high-potential staff and maximize their potential within the organization.

The management side will support the work with tools and technologies, such as leveraging AI and new technologies to improve the Bank of Thailand's processes. For example, implementing Robotic Automation processes to reduce time-consuming tasks, allowing Bank of Thailand personnel to dedicate their time to other development projects or data analysis, thereby increasing efficiency.

Suwannee stated that the Bank of Thailand's Objective and Key Results (OKR) target includes at least three projects utilizing AI to improve work processes. For example, AI will be used to assist in call center operations. When callers contact the system, it will record their information and display previously answered responses on the screen, facilitating the workflow for staff. Furthermore, there is a concept to develop a system capable of identifying caller sentiment, allowing staff to better understand and respond to complaints.

Another project involves managing the over 300-400 regulatory announcements for financial institutions. When employees change jobs or new employees join, they may have difficulty finding the information. Therefore, there are plans to develop a chatbot that allows users to type in questions. For example, if asked about credit card limitations according to the Bank of Thailand's criteria, the system will display the answer along with links to relevant announcements for immediate reference.

"My initial goal upon taking on this new position is to create clarity in overseeing personnel at the Bank of Thailand. In the early stages of my work, I'm giving myself time to learn various things. I'm usually a quick decision-maker, but I need to listen more to the opinions and experiences of my colleagues. Therefore, each decision must be carefully considered."

Suwannee further stated that, in addition, the management division is responsible for legal and risk management. The legal department provides advice on potential legal risks, while the risk management department helps assess and resolve issues that may arise from organizational risks, ensuring that operations are conducted prudently.

Another important function of the administration is overseeing banknote management. Recently, the Bank of Thailand issued new polymer banknotes in denominations of 100 and 50 baht, which have a longer lifespan and include Braille symbols to assist the visually impaired. These are all part of the administration's responsibilities.

Ready to adjust operations.
Embracing the Bank of Thailand's "reaching out to the ground" era.

Suwannee said that with the vision of the Bank of Thailand... "Stand tall, look far, reach out your hand, stay grounded." This is a concept that reflects clarity in operations, especially the word... "Stand straight." Until now, there have been outside views that the Bank of Thailand might be too straightforward. However, what the Bank of Thailand needs to clarify further is… "Extend your hand" and "Down to earth" This is a key policy of... Mr. Vitai Ratanakorn The current governor places great importance on this concept, and supporting departments such as administration will play a crucial role in driving it forward within the organization.

In terms of key management roles, there will be a restructuring of work processes to drive essential and important needs within the organization, aligning with a hands-on, down-to-earth approach. This may involve creating new departments or adjusting work styles, as well as increasing staffing in critical areas such as capital management and ensuring fairness for service users, given the increasing number of service providers.

"Previously, audits focused primarily on commercial banks. However, with the changing nature of service providers, regulating non-bank financial institutions is playing an increasingly important role. Therefore, it is necessary to strengthen human resources and utilize technology to enhance the efficiency of audits."

Most recently, the Bank of Thailand (BOT) is also responsible for regulating hire-purchase businesses, which are expected to number as many as 2,000. The working methods will need to change, requiring data analysis to identify targets and conduct investigations when significant issues arise, as traditional inspection methods cannot handle this volume of work. The BOT needs to utilize data analytics to improve efficiency in certain cases when problems are identified, along with conducting inspections when necessary, to ensure comprehensive and effective oversight. The focus will also be on promoting transparency and accountability among businesses towards their customers.

Put on the debt resolution hat.
push SAM is a Social AMC.

In addition to her administrative duties at the Bank of Thailand, Suwannee will also serve as the Chairperson of the Board of Directors of Sukhumvit Asset Management Co., Ltd. (SAM), effective November 1, 2568. SAM is 100% owned by the Financial Institutions Development Fund and has been entrusted with a key role by the government and the Bank of Thailand in assisting people with non-performing loans, particularly retail and SME debt. She must also adapt SAM's strategy to become a "Social AMC," an asset management company focused on helping the public without seeking profit.

Suwannee stated that, given the overall slowdown of the Thai economy and the country's various structural problems, including high levels of household debt, SAM will be a crucial government mechanism to serve as a central hub for managing and resolving various types of debt. This will provide solutions for individuals and businesses, allowing them to return to normal life and business operations, and fostering good financial discipline. Ultimately, this will contribute to the sustainable resolution of the country's household debt problems.

The latest debt resolution project is the "Quick Debt Consolidation, Move Forward" program, which aims to assist debtors with outstanding debts less than 100,000 baht. Previously, if each bank handled debt resolution separately, the results might not be comprehensive. Therefore, the concept of consolidating debtors under a central agency was proposed. This will allow debtors to have their debts resolved comprehensively and manage them more effectively. SAM is considered the most suitable central agency to take over and manage the debts of an estimated more than 1 million accounts. In the past, SAM has worked in an integrated manner with financial institutions, the National Credit Bureau, and government agencies such as the Ministry of Finance and the Bank of Thailand to ensure that the project effectively helps resolve the debt problems of the public.

However, in the past, SAM specialized in secured loans such as home loans or other secured loans. Since 2563, SAM has been assigned a social role as a “debt relief clinic,” focusing on service rather than acquiring debt directly. This differs from the “Pay Off Debt Quickly, Move Forward” project, where SAM will directly acquire debtors into its portfolio. This is a very challenging task, requiring adjustments to processes and systems to manage unsecured debt.

“The ‘Quick Debt Consolidation, Ready to Move Forward’ project, which allows SAM to directly take over debtors, is another challenging mission. It required adapting the system to accommodate unsecured debt, which, despite its low value, comprised a large number of accounts. This is also a priority policy that the Bank of Thailand and the Ministry of Finance want to push forward quickly. I would like to thank the board of directors, management, and all SAM employees for their dedication and cooperation in pushing this project forward so seriously.”

Suwannee also stated that this project is a crucial test for SAM in fulfilling its important responsibilities and driving its success. The challenges of this project begin with the approximately 34 creditors participating, as well as the negotiation and drafting of debt purchase agreements. The pricing package for the assistance was agreed upon between the Thai Bankers Association and the Bank of Thailand's debt resolution team. Furthermore, SAM has to negotiate a large number of contracts, requiring a legal department to closely monitor the details of each contract.

Meanwhile, SAM's role is to fulfill the agreement after receiving the transferred debt, starting with debtors of commercial banks and their subsidiaries. Debtors of state-owned specialized financial institutions will be transferred to Ari Asset Management Company Limited (ARI-AMC).

"Another challenge is the large number of borrowers. It will be necessary to screen out those who don't meet the criteria. However, due to the sheer number, a key task is to contact and publicize the program to ensure as many borrowers as possible have access to it."

For the “Pay Off Debt Quickly, Move Forward” project, registration is open to the public from January 5, 2569. Debtors who have debt obligations according to the above conditions can register to participate in the project through (1) the Bank of Thailand website (www.bot.or.th/cleardebt) or (2) channels of Sukhumvit Asset Management Company Limited (SAM) (www.sam.or.th) or (3) channels of participating financial institutions.

Follow and read other columns in the February 2569 Bank Finance Journal, Issue 526, in digital format: https://goo.gl/U6OnIi

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