The Bank of Thailand has announced a reduction in the Financial Institutions Development Fund (FIDF) fee for 2026, lowering the levy from 0.46% to 0.32% of deposit bases. The policy is designed to give financial institutions more flexibility and enable them to pass on cost savings, particularly to support vulnerable debtors during a sluggish domestic economic environment.
According to Maybank Securities, this reduction in the FIDF fee, a key operating cost for Thai banks, is a positive development. As of the end of November 2025, Thailand’s total deposits stood at THB 17.5 trillion. Based on Maybank’s estimates, the 14 basis point reduction in the FIDF fee will yield cost savings of approximately THB 24.5 billion for the country’s banking sector.
These savings are expected to be redirected to back Small and Medium-sized Enterprises (SMEs) and retail customers, both of whom continue to face elevated household debt levels and a prolonged domestic activity slowdown.
Maybank Securities noted that such support measures are anticipated to help contain asset quality risks for banks, allowing them to potentially reduce credit costs in 2026. Looking back, a similar policy move took place during the Covid-19 pandemic from 2020 to 2022, which saw a 23 basis points cut to the FIDF deposit fee and a 40 basis points reduction in lending rates, aiding financial stability during a crisis.
In terms of investment outlook, Maybank maintains its top pick in the sector as Bangkok Bank Public Company Limited (SET: BBL), citing its diversified revenue streams, robust balance sheet, and attractive valuation amid the evolving rate and cost environment.
