Thai central bank wary of fragility in financial system

 

FILE PHOTO: Thailand's central bank is seen at the Bank of Thailand in Bangkok, Thailand in this April 26, 2016. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Thailand's central bank said on Wednesday the nation's financial system exhibited fragility in some areas due to underlying risks in the property sector.

 

The central bank will monitor banks' mortgage loan standards, rising mixed-use projects, and the impact of foreign demand, particularly from Chinese buyers, it said in a statement.

 

The continuing focus on yield is possibly leading to underpricing of risks, it said.

 

Last week, the Bank of Thailand raised the benchmark policy rate <THCBIR=ECI> from near record lows by 25 basis points to 1.75 percent, the first tightening since 2011, to curb financial stability risks.

 

(Reporting by Orathai Sriring; Editing by Shri Navaratnam)

 

-- © Copyright Reuters 2018-12-26

If foreigners were aloud to buy and own house and land without all the restrictions the property market would be more stable but thats just my opionon .

2 hours ago, webfact said:

BANGKOK (Reuters) - Thailand's central bank said on Wednesday the nation's financial system exhibited fragility in some areas due to underlying risks in the property sector.

And yet yesterday there was a story about 40 billion in housing loans that will be doubled due to demand ! It's like a snake eating itself.

8 minutes ago, RichardColeman said:

And yet yesterday there was a story about 40 billion in housing loans that will be doubled due to demand ! It's like a snake eating itself.

And tomorrow there may be another story in the newspapers ....

2 hours ago, webfact said:

The central bank will monitor banks' mortgage loan standards

Foreigner in my area sold his house, which was on the market for years, just last month to a Thai.

 

Bank valued it higher than the asking price, and lend 100% to the buyer

3 hours ago, keith101 said:

If foreigners were aloud to buy and own house and land without all the restrictions the property market would be more stable but thats just my opionon .

 

The problem with that is that foreign investors, not just buying a home, would be attracted and push up the prices, making it very hard for locals. Bangkok has some very very expensive condos and apartments as it is. Letting the Arab, Indian, American, Aussie, Chinese and European wealth in would push it up more.

 

London properties are owned by many foreigners and many British people cannot afford to live there. 

6 hours ago, webfact said:

The central bank will monitor banks' mortgage loan standards, rising mixed-use projects, and the impact of foreign demand, particularly from Chinese buyers

They'll get priority in purchases?

10 hours ago, Baerboxer said:

 

The problem with that is that foreign investors, not just buying a home, would be attracted and push up the prices, making it very hard for locals. Bangkok has some very very expensive condos and apartments as it is. Letting the Arab, Indian, American, Aussie, Chinese and European wealth in would push it up more.

 

London properties are owned by many foreigners and many British people cannot afford to live there. 

same in australia prices have sky rocketed up, aussies are finding they can not buy a home in there own country , as an example >chinese people buying farms, land, houses, apartments etc,, have pushed prices up in australia

Edited December 26, 20187 yr by Mad mick