ID :
114619
Fri, 04/02/2010 - 10:04
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Shortlink :
http://m.oananews.org//node/114619
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Lending by commercial banks likely to improve this year, says BoT
BANGKOK, April 2 (TNA) – Bank of Thailand (BoT) Deputy Governor Krirk Vanikkul on Thursday said that lending by commercial banks this year is
expected to improve and enjoy positive growth due to the country’s economic recovery.
Now, he said, the overall loan figures continued expanding satisfactorily. Although business loans are still contracting, the shrinkage was less than that
of last year.
Lending by the commercial banks last year shrank by 1.8 per cent or Bt200 billion in value since major companies in the business sector had issued
debentures worth around Bt200 billion.
At the same time, specialised state banks extended loans in an amount of around Bt950 billion in compliance with the government’s policy.
Of this, Bt340 billion are new loans and the rest are loans extended to replace existing loans which become mature.
“Although many commercial banks turn to issue debentures, which may affect loan growth, it should not be worrying because companies in the business sector are still able to seek funding to support their business,” he said.
Mr Krirk projected competition in the banking business would intensify this year. However, it would not make any difference for foreign financial institutions, major and small local banks in terms of competitiveness because they have different customer bases and target business groups. (TNA)
expected to improve and enjoy positive growth due to the country’s economic recovery.
Now, he said, the overall loan figures continued expanding satisfactorily. Although business loans are still contracting, the shrinkage was less than that
of last year.
Lending by the commercial banks last year shrank by 1.8 per cent or Bt200 billion in value since major companies in the business sector had issued
debentures worth around Bt200 billion.
At the same time, specialised state banks extended loans in an amount of around Bt950 billion in compliance with the government’s policy.
Of this, Bt340 billion are new loans and the rest are loans extended to replace existing loans which become mature.
“Although many commercial banks turn to issue debentures, which may affect loan growth, it should not be worrying because companies in the business sector are still able to seek funding to support their business,” he said.
Mr Krirk projected competition in the banking business would intensify this year. However, it would not make any difference for foreign financial institutions, major and small local banks in terms of competitiveness because they have different customer bases and target business groups. (TNA)
