Bangkok – Fair Finance Thailand coalition holds a press event “How Many Points Do Thai Banks Care? Year 3” via Facebook Live to announce the third-year results of policy assessments of leading Thai commercial banks and state-owned specialized financial institutions (SFIs) using the Fair Finance Guide International Methodology. Following the announcement, the coalition also hosted, “Banking for Better: from crisis to sustainability”, an online discussion between commercial banks and civil society organization (CSOs).

Sarinee Achavanuntakul, research lead of Fair Finance Thailand, explained this year’s policy assessment as follows: “Fair Finance is a global movement that uses the scores compiled by assessing publicly disclosed policies as a ‘tool’ for consumers and CSOs to compel financial institutions to improve their sustainability policies and practices. In Thailand, this is the third year that we conduct and publicize policy assessments. Fair Finance Thailand encourages the public as banks’ customers to monitor how they use our deposits. If banks fund businesses that damage the environment or violate human rights, or discriminate against clients, depositors should disapprove, and such actions would likely impact the bank’s reputation and profits down the line. All of us should therefore hold banks accountable and push them to operate responsibly and adhere to the highest standards of sustainability.”

The scores in the assessment covering the period of 2020 reveal that most banks are engaged in a healthy competition to disclose more information to the public. We found that some banks’ scores improved markedly from 2019, some banks’ scores remained constant, and some banks’ scores slightly declined. This is the first year that we use the 2020 version of Fair Finance Guide methodology, which adds a new theme “health,” bringing the total number of scored themes to 13: climate change, anti-corruption, gender equality, health, human rights, labor rights, nature, tax, arms, consumer protection, financial inclusion, remuneration, and transparency. This is also the first year that the team assessed the policies of 4 major specialized financial institutions (SFIs). The policy assessments were conducted using publicly disclosed information as of the 30th of September 2020, followed by an 8-week discussion period with banks, before finalizing the results.

Below are the total scores in percentage for the 8 commercial banks:

1. TMB Bank                                    38.9% 
2. Krung Thai Bank                         22.4%
3. Bangkok Bank                             21.8%
4. Siam Commercial Bank              21.2%
5. Kasikornbank                              20.6%
6. Bank of Ayudhya                        16.9%
7. Kiatnakin Phatra Bank                 16.1%
8. TISCO Bank                                 15.9%

As for 4 state-owned specialized financial institutions, their first-year scores are as follows:

1. Bank for Agriculture and Agriculture Co-operatives     22.1%
2. Government Savings Bank                                             15.4%
3. Government Housing Bank                                            11.1%
4. SME Bank                                                                        9.0%

Overall, 6 financial institutions scored higher than group average of 19.3%, reflecting that half of all financial institutions scored showed a commitment to sustainability that is above and beyond legal obligations.

TMB Bank retains the number 1 spot this year in the ranking, with a leap to 38.9% of total score. Sarinee explains this jump as follows, “TMB Bank this year scores many points from becoming a clear leader in announcing credit policies and exclusion list that are in line with Fair Finance expectations, such as vowing not to give financial support to any business operating in primary tropical moist forest, coal-fired power plants, and coal mines. The bank also announced that it will limit exposure to upstream oil and gas industry to no more than 10% of total loans. We are confident that, in the near future, other banks will catch up in terms of issuing clear credit policies and exclusion list that affirm their commitment to sustainability.”

Sarinee adds that “the 2020 results show a healthy competition among half the banks; many banks began to give more attention to human rights and labor rights. Bank for Agriculture and Agriculture Co-operatives and Government Savings Banks, two unlisted state-owned specialized financial institutions which policies we only began assessing this year, show several favorable policies that are in line with listed private banks, while Government Housing Bank and SME Bank have much more room to improve. In addition, all banks continue to improve their consumer protection and financial inclusion policies and practices.”

In addition to launching the 2020 policy assessment results, Fair Finance Thailand also hosted an online discussion titled “Banking for Better: from crisis to sustainability.” Speakers included representatives from TMB and Krung Thai Bank, which ranked number 1 and 2 respectively in this year’s assessment, representatives from Foundation for Consumers and Ecological Alert and Recovery – Thailand (EARTH), two members of Fair Finance Thailand coalition. The speakers exchanged views on sustainability policy priorities for banks, household debt crisis during COVID-19 pandemic, and the potential role of banks in combating severe PM2.5 air pollution and waste overflow in Thailand.

Full assessment results and attendant report can be downloaded from Fair Finance Thailand website: www.fairfinancethailand.org