ID :
150476
Sat, 11/20/2010 - 12:31
Auther :
Shortlink :
http://m.oananews.org//node/150476
The shortlink copeid
BoT chief: no need to control loan growth
BANGKOK, Nov 20 (TNA) – Bank of Thailand (BoT) Governor Prasarn Trairatvorakul on Friday insisted Thailand need not control loan expansion in the banking system with an approach similar to what China has adopted now.
Speaking of Beijing’s requirement that commercial banks must increase loan-loss provisioning to reduce loan growth, he said the Chinese government made the move to ease the country’s economic heating.
In Thailand, he said, the measure is unnecessary because loans continue expanding at a normal rate and in the tandem with economic growth.
“Beijing has initiated the measure to ease economic heating because loans expanded too quickly. But we need not follow suit because loans in our country are growing in relation to economic fundamentals. Also, the Chinese government’s move does not have any impact on us,” he said.
Regarding the supervision of banking fees to ensure they are collected properly under the Finance Ministry’s policy, Mr. Prasarn said the central bank had not yet taken additional measures. It had just monitored the results of the measures taken previously. (MCOT online news)
Speaking of Beijing’s requirement that commercial banks must increase loan-loss provisioning to reduce loan growth, he said the Chinese government made the move to ease the country’s economic heating.
In Thailand, he said, the measure is unnecessary because loans continue expanding at a normal rate and in the tandem with economic growth.
“Beijing has initiated the measure to ease economic heating because loans expanded too quickly. But we need not follow suit because loans in our country are growing in relation to economic fundamentals. Also, the Chinese government’s move does not have any impact on us,” he said.
Regarding the supervision of banking fees to ensure they are collected properly under the Finance Ministry’s policy, Mr. Prasarn said the central bank had not yet taken additional measures. It had just monitored the results of the measures taken previously. (MCOT online news)
