The Bank of Thailand is now less concerned about a bubble in the condominium market due to a reduction in oversupply and a slowdown in demand. The impact of its decision to raise the loan-to-value (LTV) ratio, which took effect from the beginning of 2011, is being monitored.
It is too soon to assess the impact of the new LTV ratio but oversupply is much less, easing concerns of a bubble, said BOT senior director Mathee Supapongse.
Last year, the central bank announced a preventive measure by raising the LTV for condominium purchases. For condominium units costing less than Bt10 million, the LTV is capped at 90 per cent, which means loan cannot be more than 90 per cent of unit cost.
The property market has started to give better signal, reflecting lower demand, said BOT director Songtum Pinto. The number of residential units getting credit approvals from commercial banks is projected to decline for all types to 5,793 in January from 9,067 units a month ago, the BOT’s Economic Conditions Report in January said.
Thai Credit Guarantee Corporation (TCG) Will Launch Bad Debt Guarantee Program for SMEs
The program will also cover SME loans that have turned into non-performing loans (NPLs), defined as loans overdue by more than 90 days, although these NPLs must not exceed two years of overdue payment.
BANGKOK (NNT) – State-owned Thai Credit Guarantee Corporation (TCG) is preparing to launch a 20-billion-baht bad debt guarantee program to assist struggling small and medium-sized enterprises (SMEs) saddled with bad debts.
Can the Subscription Economy Save Financial Services?
Going back to the pre-Covid “normal” is not an option for financial services. Fortunately, the rise of the subscription economy points towards frontiers of untapped growth for the sector.
As the world waits for mass vaccination to revive economic activity, general malaise has overtaken the financial services industry (FSI). And things will probably worsen before they get better: US banks are expected to suffer US$318 billion in net loan losses by the end of 2022, according to Deloitte.
Asia Pacific Banks shrug off commercial property risks for now
APAC commercial property prices were down around 3% on average in 2020, after a 1% rise in 2019. But the coronavirus-induced decline has been modest compared to past downturns, suggesting that the impact on banks’ commercial real estate loans will generally be much smaller this time.
More than half of Thailand’s household debt is good debt says Finance Ministry
The COVID-19 situation caused the economy to contract in 2020, raising the level of household debt against gross domestic product...
Will businesses adopt remote working permanently?
Remote working isn’t possible for our business. If that was your opinion, pre-COVID-19, you’ll have realised over the last few...
COVID-19 situation in Thailand as of 8 March 2021
The post Coronavirus Disease 2019 (COVID-19) situation in Thailand as of 8 March 2021, 11.30 Hrs. appeared first on TAT...
ASEAN, France formalise Development Partnership
JAKARTA, 4 MARCH 2021 – ASEAN and France convened the inaugural ASEAN-France Development Partnership Committee (AF-DPC) Meeting via videoconference today, marking...
Expedia and Accor join UNESCO Sustainable Tourism Pledge
Expedia Group, a mega booking platform, and the global hotel company Accor are joining forces to extend their commitment to...
Disrupted by Covid-19, will South-east Asia’s super apps join forces?
– Super apps explore inorganic growth options– Gojek in talks with e-commerce company Tokopedia over $18bn merger– Grab reported to be preparing...
Subscribe via Email
- Economics1 week ago
1.7 million Thais without smartphones register for "Rao Chana" benefits
- United States1 week ago
US pledges to enhance cooperation with Mekong subregion’s countries
- Startups1 week ago
Traveloka to launch financial services in Vietnam and Thailand
- China1 week ago
Mainland China is in no position to take Taiwan by force