ID :
148399
Tue, 11/02/2010 - 10:57
Auther :
Shortlink :
http://m.oananews.org//node/148399
The shortlink copeid
BoT monitoring lending, stock trading to stem bubble burst
BANGKOK, Nov 2 – The Bank of Thailand (BoT) is closely monitoring lending, property sector growth, and trading in the Stock Exchange of Thailand (SET) to ensure a bubble burst does not take place, according to BoT Deputy Governor Krirk Vanikkul.
He said the BoT Monetary Policy Group would be responsible for monitoring a possible bubble in the Thai economy.
Should it find the monetary policy is insufficient to supervise and reduce impacts on the economic stability, the central bank might consider resorting to the a macro prudential measure.
“We believe that what commercial banks should do while they are strong is to extend additional loans in key sectors to sustain economic growth. At the same time, the bank must be careful in lending to prevent an economic bubble in a particular sector.
“Should the banks compete to lend fiercely and too much in a particular segment, it may lead to a bubble burst, but if they lend continuously at an appropriate level and with caution, it will help lessen the possibility of an economic burst bubble,” he said.
In the first nine months of this year (January-September), lending by commercial banks grew by 7.8 per cent year on year.
It is projected the lending for the whole year would expand by 8-9 per cent, which is close to the forecast economic growth of 7.3-8 per cent this year. (MCOT online news)
He said the BoT Monetary Policy Group would be responsible for monitoring a possible bubble in the Thai economy.
Should it find the monetary policy is insufficient to supervise and reduce impacts on the economic stability, the central bank might consider resorting to the a macro prudential measure.
“We believe that what commercial banks should do while they are strong is to extend additional loans in key sectors to sustain economic growth. At the same time, the bank must be careful in lending to prevent an economic bubble in a particular sector.
“Should the banks compete to lend fiercely and too much in a particular segment, it may lead to a bubble burst, but if they lend continuously at an appropriate level and with caution, it will help lessen the possibility of an economic burst bubble,” he said.
In the first nine months of this year (January-September), lending by commercial banks grew by 7.8 per cent year on year.
It is projected the lending for the whole year would expand by 8-9 per cent, which is close to the forecast economic growth of 7.3-8 per cent this year. (MCOT online news)
