The central bank says it’s planned issuance of stricter regulation to control personal and credit card loan extended by commercials won’t affect the general pubic much.
The stricter measure will only apply with new applicants for loans and credit cards.
This was revealed by the Bank of Thailand’s assistant governor in charge of monetary policy group Jaturong Jantarangs.
He elaborated on the bank’s planned introduction of stricter measures to regulate personal and credit card loans by lowering the maximum permissible ceiling while assuring the public that the bank would ensure the least amount of difficulties for the public.
He went on to clarify that the new policy will apply only to new loan applicants and not existing credit card and loan holders.
He said he wanted everyone to keep in mind that long-term national economic considerations must take precedence over short-term personal gratifications as the fallout from the recent ‘financial bubble’ was nearly fatal for the country.
In other considerations, Mr Jaturong revealed that the Bank of Thailand was also closely monitoring non-performance loans (NPLs) incurred by SMEs which worryingly is growing at a sustained rate.
Lately, annual quarterly statistics indicate that NPLs by SMEs has grown by a further 4.35%.
He said this is due mainly to SMEs’ comparatively unstable finances that usually result in default in loan repayments.
Other contributing factors are their low competitiveness and their poor ability to adjust to the current fluid, constantly changing global economic circumstances which sadly, results in failure and eventual business collapse.
Source: Thai Public Broadcasting Service (Thai PBS)