Kasikornbank: Thai government asks central bank to review credit card and personal loan rates
Prayuth Chan-ocha said that a series of measures prepared to solve debt problems include reducing the burden of people’s interest rates, adjusting debt repayment and promoting competition for lower rates. lower interest.
The central bank has been asked to review the interest rate cap and oversee credit cards, personal loans and auto title lending, he said.
“If our people still have a lot of debt and at a young age it will affect their entire lives,” Prayuth said in a briefing after a cabinet meeting.
Thai household debt stood at 14 trillion baht ($ 449.87 billion) at the end of December, or 89.3% of gross domestic product (GDP), among the highest in Asia.
The move sent bank stocks down 1.2% in the early afternoon, Kasikornbank down 2.3% and Siam Commercial Bank down 1.9%. Analysts said lowering rates will hurt bank profits.
Last year, the central bank cut the interest rate cap on credit cards to 16% per annum from 18% and that on personal loans to 24% to 25% from 28%, to help debtors make do in the face of the impact of coronavirus epidemics.
($ 1 = 31.12 baht)
(Reporting by Orathai Sriring, Kitiphong Thaichareon, Satawasin Staporncharnchai; editing by Martin Petty)