State banks lending rate cut will stimulate recovery

[webfact]

Lending rate cut will stimulate recovery



BANGKOK: -- The government yesterday lauded the state banks for lowering interest rates on loans to stimulate economy.

Deputy prime minister Somkid Jatusripitak said that the lowering of interest rates was good sign which all banks should adopt.

He stated that the action will show that banks care for the financial situation of their customers especially those from lower income brackets.

Mr Somkid said that this will help jump-start the economy and assured everyone that the economy was on the path to recovery driven by the government’s economic stimulus packages.

Three state banks are gradually lowering interest rates on loans as consumer confidence index continues to fall for a third consecutive month.

Current readings indicate that it has fallen to the lowest in a five month period.

The three state banks are Kasikorn, Bangkok and Krungthai banks.

They had announced that they were lowering loan interest rates or MLRs (minimum lending rates) by 0.25%.

This means that Kasikorn Bank and Bangkok Banks’ interest rates now stand at 6.25% while Krungthai Bank’s at 6.275%.

Other commercial banks have also made similar announcements to lower MLR by a minimum of 0.15 % thereby collectively lowering their interest rates to 6.375%.

These new rates will come into affect beginning in April 7.

Assistant governor of Financial Institutions Strategy Department of the Bank of Thailand Mr Jaturong Jantarang stated that commercial banks policy to lower interest rates on loans will ensure that the debt burden on customers especially for SMEs is lowered.

He said that the current action has been made possible by the increased liquidity in the national monetary system and believed that other banks will soon follow suit in order to stay competitive.

Source: http://englishnews.thaipbs.or.th/content/158463


-- Thai PBS 2016-04-06

[shirtless]

Did you see how well QE worked out for America, where borrowers save money people with deposit interest loose.

[Hawk]

Lending rate cut will simply increase household debt and poverty.

Thais love to borrow but most can never repay.

[55Jay]

Borrow money at 6+% to open up a noodle shop.

Next to 10 other noodle shops, 14 salons and a 3in1 coffee shop with a cute sounding name.

It definitely "stimulates" something.

[BuaBS]

Oh those nobel banks ! Lending at 6.25% while we get 1,5 % on our savingsaccount. How will they stay in business ??

[ozyjon]

Quoting Hawk

Lending rate cut will simply increase household debt and poverty.

The story above is so wrong in so many ways, Hawk nailed it,

by lowering the interest rate more people will borrow, more will

be in debt, resulting in more slaves shackled to debt they can

never re pay, it's happening world wide, lets watch the bubble.

[connda]

Rotflmao

[Bob12345]

Deputy prime minister Somkid Jatusripitak said that the lowering of interest rates was good sign which all banks should adopt.

In other news today:

Thanawat Polwichai, the director of the Center for Economic and Business Forecast with the University of the Thai Chamber of Commerce, said that the lowering of interest rates is a clear indication of the economic slowdown in the country.

(http://www.thaivisa.com/forum/topic/908426-lowering-interest-rates-indicates-thailands-economic-slowdown/?utm_source=newsletter-20160406-1529&utm_medium=email&utm_campaign=news)

Maybe these two gentleman should sit together and discuss if lowering interest rates is a good sign or a clear indication of a slowdown.

Based on my knowledge of (macro-) economics I think the deputy PM will lose some face in that discussion.

[Srikcir]

Ordinarily, national economic stimilus comes from rate cuts by the federal central bank (ie., Bank of Thailand) that is passed through to all banks. In a free enterprise system the collaboration of the three Thai state banks lowering their interest rates 0.25% would be criminal price fixing to undercut competition.

These rate cuts should not be lauded.

But the rate cuts by these three state banks allows the Bank of Thailand to delay making any rate cuts and, thus, avoid further loss of confidence in the Prayut government's ability to control the economy. In any event a total rate cut of 0.75% is needed. So the BOT will still need to further cut rates 0,50% before year end and more realistically before end of Summer.

[elgordo38]

Ordinarily, national economic stimilus comes from rate cuts by the federal central bank (ie., Bank of Thailand) that is passed through to all banks. In a free enterprise system the collaboration of the three Thai state banks lowering their interest rates 0.25% would be criminal price fixing to undercut competition.

These rate cuts should not be lauded.

But the rate cuts by these three state banks allows the Bank of Thailand to delay making any rate cuts and, thus, avoid further loss of confidence in the Prayut government's ability to control the economy. In any event a total rate cut of 0.75% is needed. So the BOT will still need to further cut rates 0,50% before year end and more realistically before end of Summer.

If the banks lower lending rates we savers will take another kick in the pants guaranteed.

[hoffy66]

Oh those nobel banks ! Lending at 6.25% while we get 1,5 % on our savingsaccount. How will they stay in business ??

You really need to shop around, i was able only last week to get 2.5% in a savings account.

[prepress]

Oh those nobel banks ! Lending at 6.25% while we get 1,5 % on our savingsaccount. How will they stay in business ??

You really need to shop around, i was able only last week to get 2.5% in a savings account.

Can you give some more information:

Which bank?

Min/max amount?

Time?

Do I need a work permit?

[BuaBS]

Oh those nobel banks ! Lending at 6.25% while we get 1,5 % on our savingsaccount. How will they stay in business ??

You really need to shop around, i was able only last week to get 2.5% in a savings account.

Can you give some more information:

Which bank?

Min/max amount?

Time?

Do I need a work permit?

Yes Hoffy , PM me where and how , if you don't want to post it here.

[BSJ]

When I lived in Phattaya I had an account with LH Bank that paid 2.8%, but that was for 12 months. Now it's a not so hot 1.8%! And they will take 15% tax out of your interest payments.

[prepress]

You really need to shop around, i was able only last week to get 2.5% in a savings account.

Can you give some more information:

Which bank?

Min/max amount?

Time?

Do I need a work permit?

Yes Hoffy , PM me where and how , if you don't want to post it here.

Hoffy or BuaBS, you can post it here. Or is it a secret?

[prepress]

You really need to shop around, i was able only last week to get 2.5% in a savings account.

Can you give some more information:

Which bank?

Min/max amount?

Time?

Do I need a work permit?

Yes Hoffy , PM me where and how , if you don't want to post it here.

Hoffy or BuaBS, you can post it here. Or is it a secret?

[55Jay]

You really need to shop around, i was able only last week to get 2.5% in a savings account.

Can you give some more information:

Which bank?

Min/max amount?

Time?

Do I need a work permit?

Yes Hoffy , PM me where and how , if you don't want to post it here.

Hoffy or BuaBS, you can post it here. Or is it a secret?

A "savings" account at 2.5%, I'm all ears.

Hoffy66 was over on the Bank Interest Rate thread recently and may be referring to a fixed deposit accounts, which you can still find in the 2% range if you look around and don't mind trading time and liquidity for better returns. Likely to be taxed @ 15% but depending on a few personal variables, can file a tax return and have it refunded the following year.

[BuaBS]

Can you give some more information:

Which bank?

Min/max amount?

Time?

Do I need a work permit?

Yes Hoffy , PM me where and how , if you don't want to post it here.

Hoffy or BuaBS, you can post it here. Or is it a secret?

A "savings" account at 2.5%, I'm all ears.

Hoffy66 was over on the Bank Interest Rate thread recently and may be referring to a fixed deposit accounts, which you can still find in the 2% range if you look around and don't mind trading time and liquidity for better returns. Likely to be taxed @ 15% but depending on a few personal variables, can file a tax return and have it refunded the following year.

Hoffy is not sharing...

And 2 % for a long time fixed account is not what I want. ( + the bother to reclaim the 15 % tax).