BoT expects national household debt to rise further

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BANGKOK, 7 May 2015 – The Bank of Thailand (BOT) is expecting national household debt to rise further and has expressed concern that several commercial banks are tightening loan approvals.

The concerns were quoted in a recent BOT survey on the opinions of financial executives overseeing the credit & loan affairs of various bank and non-bank institutions.

The report stated that commercial banks predicted more demand for credit & loans for general consumption from the household sector during the second quarter. However, the banks indicated that they would impose strict loan regulations, especially for business loans.

The survey revealed that commercial banks have already implemented harsher loan codes since the first quarter, resulting in a reduced number of clients applying for credit cards and auto loans.

Meanwhile, a few government financial institutes maintained relaxed regulations for general-purpose loans, as part of the administration’s policy to help maintain spending in the private sector during the second quarter.