Thai central bank weighs up consumer loans rate cut

[snoop1130]

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

 

BANGKOK (Reuters) - Thailand's central bank is debating a reduction in interest rates for some consumer loans amid fears that lenders will reject high-risk borrowers and drive them towards loan sharks, an assistant governor said Wednesday.

 

Last month, Prime Minister Prayuth Chan-ocha asked the Bank of Thailand (BOT) to review the ceiling of interest rates for credit cards and personal loans to help debtors and tackle high household debt, a move which has added to pressure on banks.

 

"We are still considering whether we will reduce (rates) or not. We have to look at the pros and cons," Assistant Governor Thanyanit Niyomkarn told a briefing.

 

If interest rates are lowered, high-risk debtors who already pay the highest interest rates will be pushed out of the financial system towards loan sharks who lend at extremely high rates, she said.

 

Last year, the BOT cut the rate ceiling for credit cards to 16% per year from 18% and that of personal loans to 24%-25% from 28%, to help debtors cope with a COVID-19 outbreak.

 

This quarter, the BOT expects to announce rules on bank fees that will be fair and better reflect the actual costs incurred by lenders, Thanyanit added.

 

-- © Copyright Reuters 2021-07-21

 

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[Airalee]

17 minutes ago, snoop1130 said:

Last year, the BOT cut the rate ceiling for credit cards to 16% per year from 18% and that of personal loans to 24%-25% from 28%, to help debtors cope with a COVID-19 outbreak.

That’s one #ell of a spread.  It’s no wonder that there is no love for banks.

 

18 minutes ago, snoop1130 said:

If interest rates are lowered, high-risk debtors who already pay the highest interest rates will be pushed out of the financial system

“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain”

 

-Mark Twain

[LazySlipper]

Whatever it takes to bring the Greenback up to 35bht to the dollar... and 30 bht to the Canadian loonie...

[johng]

3 minutes ago, Airalee said:

but wants it back the minute it begins to rain”

Not only that  he wants 3 umbrellas back for lending you one !

[Cake Monster]

15 hours ago, snoop1130 said:

Last year, the BOT cut the rate ceiling for credit cards to 16% per year from 18% and that of personal loans to 24%-25% from 28%, to help debtors cope with a COVID-19 outbreak.

Jesus Christ on a Bicycle.

" cut from 28 % to 24 % -25 % "on personal Loans

No wonder Thai Banks are good Stock on the SET.

[villageidiotY2K]

Why buy things u can't afford with ur meager salary??? 

Bafoons

 

30 yrs loan for da <deleted>ty house, 7 yr loan for da Fortuna, 2 yr for da ipone 555555t6t55555t5555

 

Also pls don't pump kids if u got no money! Their life will be a misery

 

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