Results 1 to 15 of 15
  1. #1
    Thailand Expat
    tomcat's Avatar
    Join Date
    Nov 2005
    Last Online
    @
    Posts
    12,025

    Too Much Money in Banks

    Record Flood of New Deposits Is a Problem for Thailand’s Banks

    By Anuchit Nguyen
    May 29, 2020, 4:00 AM GMT+7


    • Covid-19 drives search for safe haven for those with cash
    • Sharp economic slide set to limit good lending opportunities


    Commuters wearing protective masks gather at a station platform in Bangkok, Thailand, on Feb. 5. Photographer: Andre Malerba/Bloomberg

    Thais are turning to banks as a safe haven, adding deposits at a record pace in the Covid-19 era. While that’s a vote of confidence, the lenders are likely to face a hard time putting all the funds to good use.

    Total deposits at all commercial banks surged by 833 billion baht ($26 billion) in March, a record for a single month, according to Bank of Thailand data dating back to 2001. That could signal pressure on net interest margins amid challenging lending conditions, according to Yuanta Securities (Thailand) Co.

    There’s less opportunity to find enough borrowers as Thailand faces its deepest economic contraction since the late 1990s. The pandemic has badly damaged the nation’s traditional drivers, tourism and exports. A lockdown is being eased gradually but still prevents normal business operations.

    “While deposit growth has largely been in the low-cost current and savings segment, a lack of opportunities to lend and lenders’ risk aversion could pressure banks’ loan-to-deposit ratios, and consequently hurt margins,” said Diksha Gera, an analyst at Bloomberg Intelligence.

    Savings Safe Haven


    Companies have hoarded cash to avoid a “liquidity crunch,” SCB Securities Ltd. said in a note. The operating margin of listed Thai banks narrowed to 30% in the January to March period, the lowest level since 2017, according to data compiled by Bloomberg.

    As of March 31, Thai bank loans were 92% of total deposits, the lowest proportion since 2009. The stock market gauge of commercial banks has dropped 33% this year, outpacing a 15% decline in the benchmark SET Index.

    That’s not to say Thai banks aren’t seeing new business. Domestic banks’ outstanding loans rose by 224 billion baht in March, the biggest increase since 2017. Some firms have turned to banks because it’s become more difficult to borrow in the corporate bond market.

    Even so, new lending accounted for about a fourth of new deposits in March as companies delayed investment and expansion, SCB Securities said. The climb in deposits that month was 39% higher than the combined increase for all of 2019, Bank of Thailand data show.

    If history is any guide, major Thai banks won’t lend in haste. Bangkok Bank Pcl, Kasikornbank Pcl and Siam Commercial Bank Pcl were among the few local survivors of the late 1990s Asian financial crisis. That experience made them more conservative than many peers in Southeast Asia.
    Majestically enthroned amid the vulgar herd

  2. #2
    Thailand Expat TheRealKW's Avatar
    Join Date
    Aug 2019
    Last Online
    @
    Posts
    2,712
    What a bizarre photo to include with this story. Do they have an intern working today?

  3. #3
    Thailand Expat AntRobertson's Avatar
    Join Date
    Nov 2006
    Last Online
    @
    Posts
    37,508
    Too much money in banks? Not generally a problem I struggle with.

  4. #4
    Hangin' Around cyrille's Avatar
    Join Date
    Oct 2006
    Last Online
    @
    Posts
    20,024
    News threads should have links.


    Bloomberg - Are you a robot?

  5. #5
    Thailand Expat David48atTD's Avatar
    Join Date
    Jan 2016
    Last Online
    @
    Location
    Palace Far from Worries
    Posts
    10,790
    Quote Originally Posted by AntRobertson View Post
    Too much money in banks? Not generally a problem I struggle with.
    Agreed, SWIMBO and the Rugrats see to that!

  6. #6
    Thailand Expat

    Join Date
    Jul 2018
    Last Online
    Today @ 05:48 AM
    Location
    nakhon ratchasima
    Posts
    1,454
    banks say they have tooooooooooooooo much money,why dont they print the savers rates,its rates are anually NOT monthly,one bank was giving depositors .5% for 2yrs.
    wednesday 27/5/63.borrowers around 6-7%.

  7. #7
    Thailand Expat
    tomcat's Avatar
    Join Date
    Nov 2005
    Last Online
    @
    Posts
    12,025
    Quote Originally Posted by headhunter View Post
    banks say they have tooooooooooooooo much money,why dont they print the savers rates,its rates are anually NOT monthly,one bank was giving depositors .5% for 2yrs.
    wednesday 27/5/63.borrowers around 6-7%.
    ...a friend recently bought a condo with a local bank loan: 3.5% for 10 years...he got a .9% rate for the first year as a sweetner...not too bad.

  8. #8
    Thailand Expat
    Agent_Smith's Avatar
    Join Date
    Nov 2006
    Last Online
    29-06-2020 @ 04:43 AM
    Location
    Locked down tight
    Posts
    5,033
    Quote Originally Posted by TheRealKW View Post
    What a bizarre photo to include with this story. Do they have an intern working today?
    The lady in the white jacket coming down the escalator is banking by phone, checking her savings.

    Satisfied now?

  9. #9
    Thailand Expat jabir's Avatar
    Join Date
    Jul 2016
    Last Online
    @
    Posts
    10,958
    Quote Originally Posted by tomcat View Post
    ...a friend recently bought a condo with a local bank loan: 3.5% for 10 years...he got a .9% rate for the first year as a sweetner...not too bad.
    That's a poisoned pawn, the bank will cane him once the 'sweetener' expires.

  10. #10
    Thailand Expat
    Klondyke's Avatar
    Join Date
    Aug 2014
    Last Online
    Yesterday @ 08:46 PM
    Posts
    7,186
    Quote Originally Posted by jabir View Post
    That's a poisoned pawn, the bank will cane him once the 'sweetener' expires.
    Especially when they charge the interest counted from the principal of the original loan throughout the whole payment term, not from the remaining debt amount.

  11. #11
    Thailand Expat
    Latindancer's Avatar
    Join Date
    Mar 2010
    Last Online
    Yesterday @ 06:25 PM
    Location
    Australia
    Posts
    12,687
    What ? This actually happens ?

  12. #12
    Thailand Expat

    Join Date
    Aug 2017
    Last Online
    Today @ 05:48 AM
    Location
    Sumatra
    Posts
    4,406
    Quote Originally Posted by Latindancer View Post
    What ? This actually happens ?
    Dumb or naive?
    No wonder SA can’t flog his condo. Even Bogans are financially illiterate

  13. #13
    Thailand Expat
    Agent_Smith's Avatar
    Join Date
    Nov 2006
    Last Online
    29-06-2020 @ 04:43 AM
    Location
    Locked down tight
    Posts
    5,033
    Pay cash. Debt is theft by the banking class.

  14. #14
    Thailand Expat

    Join Date
    Jul 2018
    Last Online
    Today @ 05:48 AM
    Location
    nakhon ratchasima
    Posts
    1,454
    100 hotel owners who cant borrow from the banks,that means they dont own fk.all.

  15. #15
    Thailand Expat
    tomcat's Avatar
    Join Date
    Nov 2005
    Last Online
    @
    Posts
    12,025
    Quote Originally Posted by jabir View Post
    That's a poisoned pawn, the bank will cane him once the 'sweetener' expires.
    ...he plans to pay it all off in 3 years...not too bad a caning...

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •