Interest Rates Show Sign Of Clear Upward Trend

[george]

Local interest rates show sign of clear upward trend

BANGKOK: -- Local interest rates show a sign of the clear upward trend with Kasikornbank Plc, one of the country’s major commercial banks, deciding to raise both deposit and lending rates.

Prasarn Trairanavorakul, the bank’s president, said effective on July 4, the 24-month saving rate offered by the bank would increase to 1.75% from 1.25% and the 36-month saving rate to 2% from 1.5%.

The adjustment of the long-term deposit rates aimed to ensure the bank’s assets and liabilities are managed properly and its interest rates are offered in the same direction of those in the money market.

He said it is also an alternative channel for people who want to deposit their money in the long term for more attractive returns.

Currently, he said, the bank needed not mobilize funds through the deposits because its liquidity remained rather in excess.

To adjust itself to the market condition, Mr. Prasarn added, the bank also raised lending rates to the same level offered by other major commercial banks with its minimum lending rate (MLR), minimum overdraft rate (MOR) and minimum retail rate (MRR) up from 5.5%, 5.75%, and 6% to 5.75%, 6%, and 6.25%, effective on Monday.

--TNA 2005-07-01