BoT expects national household debt to rise further

BANGKOK, 7 May 2015, (NNT) - The Bank of Thailand (BOT) is expecting national household debt to rise further and has expressed concern that several commercial banks are tightening loan approvals.

The concerns were quoted in a recent BOT survey on the opinions of financial executives overseeing the credit & loan affairs of various bank and non-bank institutions.

The report stated that commercial banks predicted more demand for credit & loans for general consumption from the household sector during the second quarter. However, the banks indicated that they would impose strict loan regulations, especially for business loans.

The survey revealed that commercial banks have already implemented harsher loan codes since the first quarter, resulting in a reduced number of clients applying for credit cards and auto loans.

Meanwhile, a few government financial institutes maintained relaxed regulations for general-purpose loans, as part of the administration’s policy to help maintain spending in the private sector during the second quarter.


-- NNT 2015-05-07

I would have to agree about the household debt rising. I know mine is as I am building our house

"The Bank of Thailand (BOT) is expecting national household debt to rise further and has expressed concern that several commercial banks are tightening loan approvals."

The norm is having a Central Bank warning financial institutions on credit risk.

Here is the one expressing concerns about tightening loan approvals in light of high debt levels.

Sort of back akwards Debt not the issue it is repaying loans which Thai's hate.

I'm confused:

"The Bank of Thailand (BOT) is expecting national household debt to rise further and has expressed concern that several commercial banks are tightening loan approvals."

If they are expecting a further increase in household debt, why are they concerned that the banks are tightening loan approvals, surely that's a good thing, preventing people from borrowing more and getting further in debt?

Or is it simply that (some) Thai's haven't cottoned on to the fact that they actually have to pay back the loans (+ interest) for things at some point?

@Tatsujin:.it means that loan growth comes from the non-banking sector or so called shadow banking sector. This is a concern because it's less transparent and not regulated by the BoT.

I'm confused:

"The Bank of Thailand (BOT) is expecting national household debt to rise further and has expressed concern that several commercial banks are tightening loan approvals."

If they are expecting a further increase in household debt, why are they concerned that the banks are tightening loan approvals, surely that's a good thing, preventing people from borrowing more and getting further in debt?

Or is it simply that (some) Thai's haven't cottoned on to the fact that they actually have to pay back the loans (+ interest) for things at some point?

W.C. Fields stated it "There is a sucker born every day"

@Tatsujin:.it means that loan growth comes from the non-banking sector or so called shadow banking sector. This is a concern because it's less transparent and not regulated by the BoT.

Accept if you read all the way to the end of the article.

Meanwhile, a few government financial institutes maintained relaxed regulations for general-purpose loans, as part of the administration’s policy to help maintain spending in the private sector during the second quarter.

This has govt bailout written all over it. Maybe debt forgiveness is a better term. Either way its gonna get paid out by the state.

I would have to agree about the household debt rising. I know mine is as I am building our house

The young adults in the US are not fairing any better:

http://www.theepochtimes.com/n3/1347415-one-quarter-of-all-millennials-struggle-to-pay-for-groceries/

The household debt to GDP ratio was 85.9% as of December 2014. Most Thais that I know don't seem concerned about their debt. If a family has three children there will be four or five of the latest smart phones in the house. A lot of them are eyeball deep in debt to loan sharks.

The government is pushing education reform. Economics class should be mandatory for all highschool students. It is too late for the parents.

I'm confused:

"The Bank of Thailand (BOT) is expecting national household debt to rise further and has expressed concern that several commercial banks are tightening loan approvals."

If they are expecting a further increase in household debt, why are they concerned that the banks are tightening loan approvals, surely that's a good thing, preventing people from borrowing more and getting further in debt?

Or is it simply that (some) Thai's haven't cottoned on to the fact that they actually have to pay back the loans (+ interest) for things at some point?

W.C. Fields stated it "There is a sucker born every day"

I like the one, ''It is morally wrong to give a sucker an even break''

I'm confused:

"The Bank of Thailand (BOT) is expecting national household debt to rise further and has expressed concern that several commercial banks are tightening loan approvals."

If they are expecting a further increase in household debt, why are they concerned that the banks are tightening loan approvals, surely that's a good thing, preventing people from borrowing more and getting further in debt?

Or is it simply that (some) Thai's haven't cottoned on to the fact that they actually have to pay back the loans (+ interest) for things at some point?

W.C. Fields stated it "There is a sucker born every day"

I like the one, ''It is morally wrong to give a sucker an even break''

God helps those who first help themselves, else we would be casting pearls before hogs.

Finance Minister Sommai Phasee isn't worried:

"To solve the household debt problem in the long term, people should be encouraged to get more income through income distribution and narrowing disparity" The Nation 2015-04-10

Gen. Prayut isn't worried:

"Please refrain from racking up debts," 2015-02-11

Everyone else is worried.

- 94% of Thai workers remain in heavy debt and of these 60% are unofficial or unregulated loans.

- workers are asking help from the government to lessen the burden with minimum daily wage adjusted to 491 baht in three years.

- ratio of household debt to gross domestic product could reach 100 per cent in the next few years

- total amount of household debt is one of the highest rates in Southeast Asia

The door is wide open for deflation by 2015Q3.

I'm confused:

"The Bank of Thailand (BOT) is expecting national household debt to rise further and has expressed concern that several commercial banks are tightening loan approvals."

If they are expecting a further increase in household debt, why are they concerned that the banks are tightening loan approvals, surely that's a good thing, preventing people from borrowing more and getting further in debt?

Or is it simply that (some) Thai's haven't cottoned on to the fact that they actually have to pay back the loans (+ interest) for things at some point?

W.C. Fields stated it "There is a sucker born every day"

A popular career path for many indebted ladies