On August 13, 2019, the Bank of Thailand, the Thai Bankers' Association, and 15 member commercial banks signed a memorandum of cooperation to establish guidelines for sustainable banking practices in responsible lending at the Bangkok Sustainable Banking Forum 2019. This initiative aims to encourage commercial banks to operate with consideration for environmental, social, and governance (ESG) factors through four key approaches: 1. **Commitment to Responsible Lending** 2. **Stakeholder Engagement** 3. **Internal Policy and Process Implementation** 4. **Transparent Disclosure of Information in Lending by the End of Next Year** Dr. Veerathai Santiprabhob, Governor of the Bank of Thailand, stated that the impacts of commercial banks neglecting to consider risks related to ESG factors can lead to financial risks. It is crucial for financial institutions, led by their boards and senior management, to integrate ESG factors into their business operations and risk management. Earlier this year, many areas in Thailand faced PM 2.5 dust problems, affecting public health and tourism. Additionally, annual flooding and drought issues have impacted agricultural productivity and the quality of life of citizens. It is evident that environmental problems are increasingly pressing. On the social front, household debt remains a chronic issue in Thai society, which, if continued, could lead to vulnerabilities in households and affect the quality of borrowers and the long-term growth of the Thai economy. Moreover, corruption in various sectors of Thai society has hindered the country's development and exacerbated social inequality. The banking sector, as a financial intermediary, can help address these issues by allocating resources appropriately to mitigate negative impacts from financial support. The Thai Bankers' Association and commercial banks recognize the vital role of the banking sector in financial intermediation and have expressed their commitment to enhance the operations of Thai financial institutions through a shared policy and practice for responsible lending. This will enable banks in Thailand to support lending processes that consider ESG factors, thereby creating resilience for financial institutions and alleviating ongoing problems. The policy is set to be implemented in lending practices by the end of next year. As the journey towards sustainable banking progresses, it is essential for financial institutions to set clear goals, monitor and evaluate outcomes, and disclose reliable information in a timely manner. This collaboration marks a significant step for Thai financial institutions on the path to conducting business not only with corporate governance but also with a broader understanding of the negative impacts on the environment and society, leading to the sustainability of the Thai economy and society. Dr. Veerathai Santiprabhob visited the booths of various banks during the Bangkok Sustainable Banking Forum 2019, including Kasikorn Bank, Krung Thai Bank, and Siam Commercial Bank, where discussions on sustainable practices and responsible lending were held.