# Calls for more Competition in Thailand’s Banking Sector

- Link: https://www.thailand-business-news.com/banking/121335-calls-for-more-competition-in-thailands-banking-sector
- Published: 2024-01-09T18:03:09+07:00
- Author: Thai News ข่าวไทย

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An academic from the Thailand Development Research Institute (TDRI) has criticized
the high interest rates for deposits and loans in Thai commercial banks.

## Key Takeaways

 * The interest rates for deposits and loans in Thai commercial banks are excessively
   high compared to many other countries, hindering competition in the financial
   market.
 * While Thai banks offer low deposit rates, their loan rates are among the highest,
   indicating a lack of competition among commercial banks.
 * The government should utilize state-owned banks to foster competition by offering
   higher deposit interest rates and lower loan interest rates.

Academics suggest that the government should use state-owned banks to increase competition
in the financial market. The TDRI research fellow pointed out that while the overall
economy is growing modestly, bank profits are increasing rapidly.

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They also found that Thai banks offer low deposit rates but have high loan rates
compared to other countries. This lack of competition among banks limits the options
for savers. The government is urged to use state banks to incentivize higher deposit
rates and lower loan rates.