Government urged to issue clear rule on interest difference

BANGKOK: -- The government should provide a clear rule to determine the difference between lending and deposit rates in the market, according to a top banker.

Speaking after joining a seminar at the "ICT Management Forum," Kasikornbank chairman Bantoon Lamsum said he disagreed with comments made by certain government figures that the difference between lending and deposit rates offered by commercial banks are too wide.

He said such remarks could be seen as an intervention in prices and interest rates in the market.

Actually, he said, the government should come up with a clear measure for commercial banks to follow.

For instance, it might have state banks such as Krung Thai Bank take a lead in the deposit rate increase and lending rate cut and then monitored the feedback in the financial system.

"The government should discuss with the Bank of Thailand a clear way to determine the lending and deposit rates. It should not comment through newspapers."

Asked to comment on the government-initiated economic stimulus packages, Mr. Bantoon said they looked justified, but whether they would be able to help cope with the economic woes must be monitored.

Mr. Banhoon said many countries had experienced the export slowdown since the global economy stumbled

To cope with the situation, entrepreneurs must accelerate invent new and innovative products and position them in the market, he said, adding that they should attempt to reduce production costs as well.

-- TNA 2009-01-23

Speaking after joining a seminar at the "ICT Management Forum," Kasikornbank chairman Bantoon Lamsum said he disagreed with comments made by certain government figures that the difference between lending and deposit rates offered by commercial banks are too wide.

Hardly surprising!