BANGKOK, 8 September 2012 – The Thai central bank is keeping a watchful eye on the financial institutions, due to worries of continued loan growth.
The Bank of Thailand (BoT)’s Deputy Governor Krirk Vanikkul said on Friday that the BoT has noticed that the country’s loan growth rate has been on a constant rise lately, the situation that has called for it to rein in certain types of loans as soon as possible.
Mr. Krirk conceded that the growth of local loans has been supported by several factors, such as last year’s flood crisis which forced many to acquire funds to repair their homes or cars, and the need for more circulating fund from the private sector.
He added that the government’s soft-loan campaign and the first car/house policy also pushed the loan growth rate to 25 percent lately.
Despite these rationales, the Deputy BoT Governor stated that the central bank will stay vigilant about the country’s loan approvals by all financial institutions to prevent any undesirable circumstances in the future.