Connect with us

Banking

Thai Central Bank will not revise loan-to-value (LTV) measures

The central bank has implemented the LTV regulation to deal with household debt and speculative activities, which have caused home prices to increase

Published

on

Real Estate promotion billboards in downtown Bangkok

BANGKOK, 30 May 2019 (NNT) – Following the implementation of the loan-to-value (LTV) regulation since April this year, mortgage lending has shown signs of slowing down.

However, the Bank of Thailand (BOT) reported that the slowdown is caused by the accelerated transactions since the end of last year.

The BOT Governor, Veerathai Santiprabhob, said the central bank will not revise the LTV measures at this time because the contraction of the mortgage market is caused by the accelerated transactions and ownership transfers since the fourth quarter of 2018. As a result, the mortgage lending figures for April and May were lower than projected. The BOT will observe the impact of these measures for a period of time before making further decisions.

The central bank has implemented the LTV regulation to deal with household debt and speculative activities, which have caused home prices to increase. The central bank insisted that this regulation will benefit first-time home buyers who look for affordable homes. The regulation will also help prevent an economic bubble from forming in the country’s property sector.

As for the BOT’s measures to supervise car loans, the central bank had a discussion with the Thai Bankers’ Association (TBA) to consider the criteria for auto loan approvals in connection with a buyer’s debt to income ratio. Previously, banks and financial institutions approved loans by focusing more on the products than the buyer’s income.

Source link

Click to comment

Leave a Reply

Banking

The Importance of E-Wallets for Online Gaming Sites

With e-wallets and cryptocurrency being the most relevant options, banks have been put on the side burner, especially when e-wallets and cryptocurrency allow for fast electronic transfer, that is done instantly.

Published

on

e-wallet

Online gambling is an industry that needs to keep up with technological trends, to make sure it stays relevant and convenient within the gambling community.

(more…)
Continue Reading

Banking

Thai Government to issue Bt50 bln ( $1.57 bln)Savings Bonds to fund COVID-19 Relief Measures

The special savings bonds are available via the “Sasom Bond Mung Kung” e-wallet, abbreviated to “Sor Bor Mor” in Thai on Krungthai Bank’s Pao Tang mobile app, and through four dealer banks. The minimum purchase of these bonds is 1,000 baht, without no maximum. Interest is paid twice a year.

Published

on

BANGKOK (NNT) – Thailand’s Public Debt Management Office (PDMO) plans to issue “Ying Aom Ying Dai” (the more you save, the more you earn) government savings bonds, worth 50 billion baht, next month, aiming to use the funds to finance state projects to ease the impacts of the pandemic.

(more…)
Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,162 other subscribers

Wise

Recent