Thread: PM asks top bankers to cut lending rates

Prime Minister Srettha Thavisin had an informal meeting with the CEOs of four of Thailand’s top banks at Government House this morning, reportedly to ask them to consider cutting their lending rates for “fragile” groups, such as small entrepreneurs.


The meeting, before the start of the cabinet meeting, lasted about 30 minutes.


The prime minister told the media that he had invited Chartsiri Sophonpanich (Bangkok Bank), Payong Srivanich (Krung Thai Bank), Kattiya Indaravijaya (Kasikornbank) and Arthid Nanthawithaya (Siam Commercial Bank) to discuss, informally, the general economic situation and the high policy interest rate in particular.


Since he has known these four bankers for almost two decades, the prime minister said that he asked them whether it would be possible for them to reduce their lending rates to help those who are suffering under high interest rates.


The meeting was not about competition over how much each bank can cut their rates, said the prime minister, adding that he would like them to demonstrate their solidarity about how they can help in this matter.


Asked if there is a timeframe for their response, the prime minister said that he did not press them for an answer, adding “We just looked into each other’s and knew what we want from one another”.


The government has been urging the Monetary Policy Committee of the Bank of Thailand to cut the 2.5% policy rate by 25 basis points, to ease the financial burden on borrowers. Nonetheless, the committee, at its most recent meeting on April 10th, resolved to maintain it at 2.5%.

PM asks top bankers to cut lending rates | Thai PBS World : The latest Thai news in English, News Headlines, World News and News Broadcasts in both Thai and English. We bring Thailand to the world

Thai banks agree to reduce lending rates by 0.25% for six months

Responding to the government’s call for a cut in lending rates, the Thai Bankers Association (TBA) announced today that it has decided to reduce the minimum retail rate (MRR) for creditworthy retail borrowers, among them financially fragile people and SMEs, by 0.25% for six months.


TBA president Payong Srivanich said today that the association’s committee, at its meeting yesterday, was fully aware of the need to help financially fragile customers while the economy is still recovering.

The 0.25% MRR cut will help ease their interest burden, giving them an opportunity to recover, in tandem with the driving of the economy by the state and in line with the central bank’s responsible lending and sustainable debt resolutions, said Payong.


He also said that the TBA and its member banks realise their corporate responsibility to help their customers, small entrepreneurs and members of the public.


The TBA’s decision comes after Prime Minister Srettha Thavisin invited the CEOs of the Bangkok, Krung Thai, Kasikorn and Siam Commercial banks for a meeting at Government House on Tuesday, to seek their cooperation by reducing their lending rates.
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Thai banks agree to reduce lending rates by 0.25% for six months | Thai PBS World : The latest Thai news in English, News Headlines, World News and News Broadcasts in both Thai and English. We bring Thailand to the world