The amount of non-performing loans (NPLs) from credit cards during the first quarter of 2018 fiscal year has jumped to 51 billion baht, according to the Credit Bureau.
The bureau reported that credit card NPL starting from one-month non-payment had the tendency to increase since late last year thanks to the government’s tax exemption for 15,000 baht spending on shopping by taxpayers, with many consumers resorting to making payments for this spending via their credit cards.
Out of a total of 19 million credit cards, the bureau said that one million cards were involved in the 51 billion baht worth of NPLs for the first quarter of the year. In contrast to the rise of NPLs especially among the Generation Y young working people, income of the working people in general has not increased as many companies did not pay bonuses to the employees.
In the meantime, banks have tightened up their lending, especially personal loans and credit card spending after the Bank of Thailand introduced stringent measures to control credit cards. Mr Amorn Suvachittanont, assistant president of Kasikorn Bank, said that NPLs from credit cards have little impacts on household debts because most of the NPLs involved young working people or the white-collar workers and banks have to keep a close watch on NPLs on real estate.
Credit Bureau reported NPLs on real estate amounted to 200 billion baht largely due to missed payments on instalments by Generation X consumers as their earnings are below their spending obligations. Credit card NPLs soar to 51 billion baht for the first quarter of 2018 fiscal year – Thai PBS English News
BOT relaxes rules to Curb Strong Baht
the Bank of Thailand (BOT) decided to relax regulations to facilitate capital outflows to help promote capital flow balance and lessen pressure on the baht.
The Thai baht has been under pressure due to imbalanced capital flows in the current environment of highly uncertain and volatile external conditions, the Ministry of Finance (MOF) and the Bank of Thailand (BOT) decided to relax regulations to facilitate capital outflows to help promote capital flow balance and lessen pressure on the baht.(more…)
Bank of Thailand cuts rate by 0.25% to 1.25 per cent
The latest cut brings the Bot’s policy rate to an historical low, which the bank maintained from April 2009 to July 2010 during the subprime global financial crisis.
On 6 November 2019, the MPC voted 5 to 2 to reduce the policy rate by 0.25 percentage point from 1.50 to 1.25 percent, effective immediately. Two members voted to maintain the policy rate at 1.50 percent.(more…)
Thailand’s loss of trade privileges with US is credit negative
The development is credit negative because Thailand’s export-oriented economy is in a difficult external environment given that a broad-based export slowdown and strong Thai baht are weakening the competitiveness of goods exporters and the country’s tourism industry.
Thailand among top five countries for salary hikes
Thailand is among the top five economies in the world to see real salary increases and is likely to see...
Thailand Ecommerce Market: Shooting For Success
At present, the Thai ecommerce market is valued at USD 3.5 billion. According to a Google Temasek study, Thailand’s e-commerce...
Aspire Set to Become First SME Neobank in Southeast Asia with US$32.5 Million Raise
The recent financing has been led by Mass-Mutual Ventures Southeast Asia with participation from Silicon Valley’s Arc Labs and existing...