21 Nov 2022
Financial Institutions
The Monetary Policy Committee (MPC) began raising its policy rates at the August and September 2022 meetings by 0.25 percent each, bringing the current policy rate to 1.00 percent. However, most large commercial banks did not hike their interest rates immediately and waited until October 2022, particularly deposit rates. A substantial increase has been seen in the launch of special deposit campaigns, chiefly by large and small commercial banks. Such campaigns have been introduced at an accelerating pace although they are intended to replenish deposits that have reached or are scheduled to reach maturity. ... Read more
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30 Dec 2021
The latest report on household lending shows that Thai households continue to incur more debts, albeit at a slower pace in line with economic conditions that are being affected by the COVID-19 pandemic. In 3Q21, outstanding household debts stood at THB14.35 trillion, an increase of approximately 4.2 percent YoY, down from the 5.1 percent YoY growth reported for 2Q21. Noticeably, the rising 3Q21 household debts was almost on par with an increase in the value of economic activity. As a result, the household debt to GDP ratio remained static at approximately 89.3 percent, which was on par with that reported for 2Q21. ... Read more
25 Nov 2019
Net loans in October 2019 decreased from the previous month by 87.7 billion Baht amid the pressure on loans at almost all banks, especially from debt repayment by the corporate sector, SME business operators and the government. Nonetheless, retail loans, namely, personal loan and other unsecured loans without collateral, continued to increase due to seasonal factors. Auto hire purchase loan and mortgage loan rose from the previous month, albeit at a slower pace. Consequently, outstanding net loans in October 2019 slowed to 11.702 trillion Baht, an increase of only 2.40 percent YoY – the lowest rate in over two years – and decelerating from 3.92 percent growth YoY in September 2019. The trend is a reflection of poor economic performance, which restrains the recovery of borrowers’ demands to withdraw funds from their loan facility. ... Read more
7 May 2019
In 2018, the number of ATMs and electronic devices used in the commercial banking system contracted 0.98 percent YoY, against the 5.17 percent growth reported for 2017, representing the first shrinkage in 35 years. Such a contraction was consistent with the substantial increase in the number of financial transactions made via digital channels. This suggests a decline in the need for the use of cash and represents a challenge to the ATM business of commercial banks in terms of its cost-effectiveness. In addition, commercial banks are increasingly turning to digital channels because the costs in offering financial services through ATMs are 30 times higher than those provided via digital channels. The cost-effectiveness of the ATM business is based on monetary and non-monetary factors, namely customer satisfaction and convenience in using financial services. ... Read more