Demand For Business Loans Likely To Further Increase, Says BoT

Demand for business loans likely to further increase, says BoT

BANGKOK: -- The demand for business loans is expected to continue growing, linked with the economic recovery after the political unrest has eased, according to the Bank of Thailand (BoT).

Still, the central bank said in a report on the loan extended by Thai financial institutions in the second and third quarters that the housing loan demand might drop from the previous quarter since most consumers had already accelerated house ownership transfers in the first half of this year.

Demands for credit card loans and household loans are projected to edge up from the previous quarter upon the improved confidence among consumers.

Financial institutions had begun easing the stringent extension of housing, credit card, and household loans.

It was found that the demand for business loans by large entrepreneurs and small- and medium-size enterprises (SMEs) rose marginally from the previous quarter.

The increased loan demand had concentrated in the production and retail-wholesale sectors. It showed a clear sign of the recovery of local demand, private consumption, and consumer confidence.

The demand for housing loans had increased due to the property market recovery and accelerated housing ownership transfers.

However, the demand for credit overall edged down slightly from the previous quarter due to the recent political violence.

Financial institutions are worried about impacts of higher political problem risk on hotels and restaurants, construction materials and the tourism sectors. (MCOT online news)

-- TNA 2010-08-11