Publication date: November 25, 2024 19:17
A bank employee handles bundles of banknotes at the Bangkok Bank head office. (Bangkok Post file photo)
Thai banking system big excess liquidity The assistant governor said on Monday that the central bank was not strengthening lending supervision, reflecting the bank's wishes. Hard to rent.
In an article published on the Bank of Thailand's website, Sukkapop Panyanukul said banks' lending decisions depend on the debtor's ability to repay the debt.
He said the banking system has had a large amount of excess liquidity over the past decade, as reflected in past commercial banks' deposits and investments with the central bank.
The amount reached 4 trillion to 5 trillion baht ($115.64 billion to $144.55 billion), he added.
The government has cited high household debt as an obstacle to efforts to boost growth in an economy that has been slow to recover from the pandemic. The government is encouraging commercial banks to strengthen and expand credit access.
The central bank's responsible lending rules only state that banks must consider setting installments that are appropriate to the debtor's living expenses, Suckerpop said.
The Federation of Thai Industries said early Monday that car production and sales have been hit by weak demand as financial institutions tighten car financing.
