Government Housing Bank looking to adopt German housing finance system for Thailand

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Government Housing Bank looking to adopt German housing finance system for Thailand

  

BANGKOK, 11 August 2016 (NNT) – The Government Housing Bank (GHB) is moving to adapt Germany’s ‘Bausparkassen’ savings system for housing in Thailand. 

GHB has joined with Germany’s National Housing Finance Institute to hold a seminar titled “Germany’s Housing Finance System: How to Acquire Your Own Home in Thailand” where Minister of Finance Wisut Srisuphan stated that he wishes to see Germany’s ‘bausparkassen’ savings system applied to Thailand in the future to give Thai citizens the chance to save more and to reduce non-performing loan (NPL) risks for financial institutes. The minister explained that currently, many Thai people file for housing loans without savings, resulting in a high rate of NPLs and ultimately undermining the financial system. 

He admitted more study is needed in Thailand, noting household debt is at a high of 80 percent, which makes starting savings accounts difficult. 

GHB president Chatchai Sirilai however, said it is possible that Germany’s savings system can be adapted for Thailand and suggested that it would work well for new graduates entering the work system who wish to own their own home in 3-5 years. The bank believes it can issue up to 10 billion baht in housing loans in the initial phase of the adaptation, which is slated for later this year, with interest to start at 2 percent annually. 

The German system groups those getting loans who are from similar demographics and allows them to share a loan, with each able to access no more than 40 percent of the total. The bank will manage the sequence of access for the loaners without them needing to coordinate among themselves. 

 

-- nnt 2016-08-11

[digibum]

Quote

The minister explained that currently, many Thai people file for housing loans without savings, resulting in a high rate of NPLs and ultimately undermining the financial system. 

 

Are Thai banks required to give unqualified people loans?  

 

Quote

He admitted more study is needed in Thailand, noting household debt is at a high of 80 percent, which makes starting savings accounts difficult. 

 

Translation, we've saddled these idiots with so much debt that they can barely afford to save up enough money to buy something that will put them deeper into debt.  How are we supposed to make any money?  

[maoro2013]

Household debt is at 80% of what?

[Srikcir]

2 hours ago, maoro2013 said:

Household debt is at 80% of what?

Gross Domestic Product

[williamgeorgeallen]

helping the poor into their own homes is what cause the american housing bubble and 2008 melt down. freddy mack and fanny may were set up to help poor people into their own homes with little or no deposit. this drove up prices and created a bubble. when it burst most low income earners and many middle income earners lost their homes. government needs to stay out of the housing market.

[american12bthai]

thai banks you get a nifty debit card with everysingle Savings account. Thus teaching thais NEVER TO SAVE MONEY. cause your debit card is ATTACHED TO YOUR SAVINGS ACCOUNT. 

 

Of course germans should take point.  germans own all the power and transpotation and.... well... everything profitable,  in thailand. plus, who would you trust in charge. ?  get my point?

 

[DrTuner]

So, after there's a few hundred baht in the account the first lucky one gets 40% and is never seen again?

[hansnl]

1 hour ago, williamgeorgeallen said:

helping the poor into their own homes is what cause the american housing bubble and 2008 melt down. freddy mack and fanny may were set up to help poor people into their own homes with little or no deposit. this drove up prices and created a bubble. when it burst most low income earners and many middle income earners lost their homes. government needs to stay out of the housing market.

You are so right.

In the US, that is.

Most countries, where the unbridled machinations of banks and insurance companies, also known as legalised criminal organisations, are restricted, the government's are doing just fine.

It starts to go wrong if "the financial market" gets a foothold into governments doings.

Always.

In your example, prices were not driven up because of or by the government, but because of the bank's, insurance companies, real estate guys & girls, and all those wanting a big slice of the government's money invested in housing for not so rich.

 

[SOTIRIOS]

...oh-oh.....

[elgordo38]

7 hours ago, digibum said:

 

Are Thai banks required to give unqualified people loans?  

 

 

Translation, we've saddled these idiots with so much debt that they can barely afford to save up enough money to buy something that will put them deeper into debt.  How are we supposed to make any money?  

Are they actually borrowing an idea from another country. Unbelievable Thainess has taken a step backward. 

[Thian]

Better adopt some German busdrivers and make them teachers in Thailand.

[Rancid]

Fiat Banking is the greatest scam of human history, and for its owners the greatest generator of unbelievable wealth ever devised.

 

Regardless, credit expands until it no longer can. Too many have already been wrong trying to answer when that might be. Little bit like musical chairs...

[Saradoc1972]

Buying your own house is a bit overrated in times when you don't know whether you'll be doing the same job in 3-5 years time. It's great when you can invest in some major city, especially capitals, though, and rake in the incredible sale value years later. Before the bubble bursts, mind you. And I suppose there are too many players in that field now having seen how things went in London and Berlin.

 

Anyhow, the Bausparkassen-System depended on an intact system of interest rates and a lot of stability, like when Bundesbank still held sway over the German Mark. Nowadays, Bausparkassen in Germany try to chase off their customers who paid money into their accounts and still enjoy guaranteed interest rates over 5 %, but just never draw on that money to actually build or buy something.

[Baerboxer]

1 hour ago, Thian said:

Better adopt some German busdrivers and make them teachers in Thailand.

 

Guess you haven't traveled on many German buses then.

[Saradoc1972]

1 hour ago, Baerboxer said:

 

Guess you haven't traveled on many German buses then.

 

What's wrong with Polish or Turkish driving skills?

[OMGImInPattaya]

No money for savings but the latest iPhone or Samsung Galaxy phone in every other hand it seems...possibly a connection?