Categories: Economy

Thai banking system has giant extra liquidity, central financial institution says


BANGKOK (Reuters) – Thailand’s banking system has giant extra liquidity and the central financial institution has not tightened its lending supervision, an assistant governor stated on Monday, reflecting banks’ reluctance to lend.

Banks‘ lending choices will rely on debtors’ potential to repay money owed, Sakkapop Panyanukul stated in an article revealed on the Financial institution of Thailand’s web site.

The banking system has had plenty of extra liquidity over the previous 10 years, as mirrored by deposits and investments of economic banks on the BOT previously, he stated.

These have been as excessive as 4 trillion baht to five trillion baht ($115.64 billion to $144.55 billion), he added.

Thailand’s authorities has cited excessive family debt as an obstacle to its efforts to spur progress in an economic system that has been sluggish to get better from the pandemic. It has been urging industrial banks to spice up and widen credit score entry.

The central financial institution’s accountable lending guidelines solely state that banks should think about setting instalments which might be acceptable for the debtors’ dwelling bills, Sakkapop stated.

Earlier on Monday, the Federation of Thai Industries stated automotive manufacturing and gross sales have been hit by weak demand as monetary establishments have tightened lending for automobiles.

($1 = 34.59 baht)

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