Bangkok Bank (BBL) is prepared to align with the second phase of the Bank of Thailand's taxonomy initiative, supporting local businesses in their transition to sustainability.
According to BBL president Chartsiri Sophonpanich, the bank has been monitoring the progress of Thailand Taxonomy Phase 2, which focuses on four sectors: agriculture, manufacturing, buildings and real estate, and waste management.
BBL is positioned to offer financial support to industries in line with the central bank's framework, he said.
The central bank's taxonomy initiative is based on a classification system designed to identify and categorise economic activities based on their environmental sustainability.
The project serves as a reference tool to guide investments, financial decisions and policy measures towards achieving Thailand's climate goals, particularly in reducing greenhouse gas emissions and aligning with the Paris Agreement and the UN's Sustainable Development Goals.
The central bank completed the public hearing for Phase 2 and the Taxonomy Working Group is reviewing feedback and refining the framework, which is expected to be finalised and published by the end of May. The central bank expects to implement Phase 2 in the second half of the year.
Mr Chartsiri said BBL has launched several programmes to help Thai businesses transition to sustainability.
The bank extended its green financing initiative dubbed the Bualuang Transformation Loan into next year after it expired in January.
BBL, Thailand's largest lender by total assets, introduced the Bualuang Transformation Loan under Phase 1, with a total allocation of 20 billion baht. This programme is designed to support small and medium-sized enterprises (SMEs) transitioning to green business practices, offering a fixed interest rate of 5% per year.
The bank also offers Financing the Transition loans, in collaboration with the central bank and eight other commercial banks. BBL set aside 10 billion baht for the loan programme.
Mr Chartsiri said the bank recorded continued loan growth under both programmes.
BBL also assists startups by raising sustainability awareness through educational and training programmes.
Regarding overall loan growth, he said the bank continues to expand its loan portfolio in response to customer demand.
While corporate clients are cautiously awaiting clearer economic conditions before making investment decisions, there has been a positive trend in outbound investments by large local corporations, particularly in Southeast Asia.
BBL set a total loan growth target of 3-4% this year and is on track to meet it, said Mr Chartsiri.
