30.04.09 Central bank urges Thailand's banks to lend more to SMEs
Source: TNA
BANGKOK, April 30 (TNA) – Bank of Thailand (BoT) Assistant Governor
Sorasith Sunthornkes on Wednesday revealed the central bank had urged
commercial banks to lend more to the business sector, particularly
small- and medium-size enterprises (SMEs), in support of government
policy.
Additionally, the central bank prompted Thailand’s commercial banks
to supervise the capital fund and non-performing loans (NPLs) closely,
and asked them to restructure debts to ensure that the capital base is
not affected.
However, at the same time he said the central bank is not in a
position to instruct commercial banks to lend more to stimulate the
economy.
What the Bank of Thailand can do, Mr. Sorasith said, is discuss and seek commercial banks’ cooperation in lending more.
Although the country’s economy currently looks unfavorable with
negative growth, he said, most banks do not intend to revise their loan
expansion plan for this year.
Most commercial banks projected loans extended by the banks this
year would grow 5-8 per cent on average, while excess liquidity in the
banking sector totaled some Bt1.3 trillion.
“So far, no banks have been seen revising the loan expansion plans.
Consequently, we believe the loan would expand in a range of 5-8 per
cent, which is considered low.
“Whether loan growth will reach 8 per cent depends on the economic
conditions and state-supported economic stimulus measures,” Mr.
Sorasith said. (TNA)
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