Thai commercial banks slash credit growth rate

[webfact]

Commercial banks slash credit growth rate

BANGKOK, 8 May 2015 (NNT) – A local commercial bank has slashed credit growth target following a slower expansion of the Gross Domestic Product. The bank is however confident that they have enough reserve for the rising Non-Performing Loans (NPLs).

Krung Thai Bank has recently adjusted its credit growth projection from 4.0 - 4.5 percent to 3.5 - 4.0 percent. The bank’s NPLs have increased by 10 billion baht during the 1st quarter with the largest expansion seen in housing loans.

Kasikorn Bank said it would soon hold a meeting to revise the growth target of its new credit. Initially KBank expected the growth would reach 8-9 percent, but the figure seemed less likely following a local economic slowdown and the underperformed export sector. KBank also seeks to control its Non-Performing Loans to be in the range of 2.4-2.5 percent this year.

Meanwhile, CIMB Bank also decreased the annual new credit growth target from 10-15 percent to flat 10 percent or 18 billion baht of the 180 billion baht credit in 2014. The bank expects growths from all types of credit, except personal loan.


-- NNT 2015-05-08

[trogers]

Slash credit growth rate - rising non-performing loans

If only the banks had started acting 3 years ago...the hangover would be less severe.

[mango66]

except on personal loan,

sure this will not bring any loss,

have you credits in EU with 28% interest pa ?

close rates to loan sharkes,

and this confirmed by GVT which works for the people !!

[quandow]

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Slash credit growth rate - rising non-performing loans

If only the banks had started acting 3 years ago...the hangover would be less severe.

Yeah, but that means facing reality, and you know how Thai's have trouble doing that.

(in the voice of Jack Nicholson) The TRUTH? You can't handle the truth!

[Srikcir]

Default on business loans will lag default on personal loans in a collapsing economy by about 6 months. That would mean the banks will start experiencing increase business defaults in 2015Q3 unless exports make a sudden and significant increase. This in turn will create a shortage of capital and start a downward spiral of the whole Thai business sector.

DEFLATION anyone?

[cookee68]

Default on business loans will lag default on personal loans in a collapsing economy by about 6 months. That would mean the banks will start experiencing increase business defaults in 2015Q3 unless exports make a sudden and significant increase. This in turn will create a shortage of capital and start a downward spiral of the whole Thai business sector.

DEFLATION anyone?

Yes please

[BSJ]

Default on business loans will lag default on personal loans in a collapsing economy by about 6 months. That would mean the banks will start experiencing increase business defaults in 2015Q3 unless exports make a sudden and significant increase. This in turn will create a shortage of capital and start a downward spiral of the whole Thai business sector.

DEFLATION anyone?

Bring it on! The international money trading boys have screwed Aussies over on the exchange rate now let Thailand feel some pain.