BoT: No NPLs in auto leasing

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BANGKOK, 9 September 2013– The Bank of Thailand (BoT) remarks that car loans are still up to standards despite fierce competition among financial institutions while confirming it is continuously monitoring auto loans and there has been no sign of significant NPLs. 

Deputy Governor of the BoT Salinee Wangtarn said the central bank was not concerned over vehicle leasing and NPLs in the sector had not increased abnormally fast. She added that no problems were found in the “Car for Cash” personal loans which use vehicles as loan guarantees.

According to Ms Salinee, there is nothing to worry about if auto companies themselves offer 0% interest loans to their customers for vehicle purchase since they are not commercial banks, which would issue loans using their deposit reserves.