BOT lowers FIDF fee to 0.32% for 2026 to help banks support debtors

The Bank of Thailand (BOT) has issued a notification temporarily reducing the annual contribution that financial institutions must remit to the Financial Institutions Development Fund (FIDF) from 0.46% to 0.32%, effective from January 1, 2026 and covering both the January-June 2026 and July-December 2026 tranches.

The BOT said the cut is intended to align with current macroeconomic conditions and reduce financial institutions’ cost burdens while the Thai economy faces heightened uncertainty, including intensified trade and technological competition, elevated geopolitical tensions and a prolonged slowdown in domestic activity.

It noted that lenders have become more cautious in extending credit, contributing to tighter financial conditions and continued contraction in business lending—especially to SMEs—which has constrained liquidity and worsened structural vulnerabilities. The BoT also cited severe flooding in the South as an additional strain on households and businesses.

The central bank said the lower levy should help financial institutions transmit targeted assistance more effectively by passing on cost savings to eligible debtors, supporting economic activity and easing the impact on those affected by the disaster, while the contribution rate is set to return to 0.46% from 2027 onwards.