Banks wary of BOT’s proposed debt relief criteria
The Bank of Thailand (BOT) is poised to issue three guidelines to reduce household debt – which rose to 16 trillion baht or 90.6% of GDP in the first quarter, from 86.3% last year.
The central bank said it will propose guidelines on responsible lending, risk-based pricing, and macroprudential policy at the end of this month. It will then seek feedback on the guidelines from stakeholders.
The risk-based pricing guideline will encourage creditors to set interest rates based on the debtor’s risk level rating. This is expected to open more loan opportunities and reduce off-system (loan shark) borrowing at high interest.
The Nation Reporter
