Banks asked to adjust interest rates appropriately

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BANGKOK, 22 March 2011 (NNT) – The Bank of Thailand (BoT) has warned all commercial banks to adjust their interest rates reasonably and fairly following the rising policy interest rate in the country. BoT Deputy Governor for Financial Institutions Stability Krirk Vanikkul admitted that the BoT would not be able to control the consideration of commercial banks in adjusting their loan and deposit rates, which is to be made in line with the current upward movement of the policy interest rate.

Mr Krirk however noted that the BoT would be able to issue measures to control those banks if they launched campaigns to gain savings excessively for their own profits.

The deputy governor then asked banks which have already changed their interest rates, to declare the net interest margin (NIM) to the public.

Meanwhile, Mr Krirk encouraged that commercial banks planning for the rate adjustment should prepare explanations to support their action in order to avoid misunderstanding among the public.