Thread: BoT relaxes regulations to allow for easier loan approvals

BANGKOK, 21st November 2018 (NNT) – The Bank of Thailand (BoT) has reformed financial institution regulations to allow for easier loan approvals starting in March next year.

BoT Governor Weerathai Santipraphop said today that the reforms will loosen restrictions on financial institutions and financial service providers, and allow them to incorporate more technology in their operations involving SMEs. The reforms include an allowance for banks to use credible information from alternative sources when reviewing a client’s credit history for a loan application. Applicable data would include ratings and business relationships, taking the place of deposit and withdrawal data.

Other variations of regulations include a more flexible limit on loans to SMEs and individuals for the setting up of a business, currently capped at five times the entities monthly income. Credit guarantees and refinancing will now only require a single document for assessment.

Changes to accommodate the BoT’s transition to the digital era are expected to save it up to 1 billion baht per year in costs and an additional 500 million baht in assessing credit guarantees for SMEs. The reforms are to be put into effect in March next year.


National News Bureau Of Thailand | BoT relaxes regulations to allow for easier loan approvals

Originally Posted by misskit

The Bank of Thailand (BoT) has reformed financial institution regulations to allow for easier loan approvals starting in March next year.

Originally Posted by misskit

Applicable data would include ratings and business relationships, taking the place of deposit and withdrawal data.

Originally Posted by misskit

Credit guarantees and refinancing will now only require a single document for assessment.

what could go wrong?

Originally Posted by misskit

BoT relaxes regulations to allow for easier loan approvals

The last thing Thailand needs at a time when foreign investment is on the decline and private debt is increasing. Deja vous all over again. 1997.