Bank of Thailand (BoT) Deputy Governor Krirk Vanikkul on Monday warned commercial banks not to be complacent about the risky property market bubble, saying the problem might occur in the near future.
What the banks should do now is to look after housing loan clients closely to ensure they have no problems repaying debts, and simultaneously oversee non-performing loans to contain any increase in the system.
Mr. Krirk conceded some commercial banks are more stringent about lending in the property sector because they might witness something unusual and see a need to adjust themselves.
But in terms of their normal function, the banks must extend loans for their commercial gain. The more they lend, the more profits they earn.
At present, he said, the country’s economy continued expanding with a sound loan growth and stable NPLs. What remains of concern now is the global economic uncertainty only because it could affect exports.
Private consumption will beneft from a gradually frming labor market and forecast gains in prices of agricultural commodities. Strengthening economies abroad will raise demand for Thailand’s exports of automobiles, electronic and electrical goods, and agricultural products. .
At the heart of productivity improvement is the quality of the country’s human resource.Examples from Korea, Taiwan, and Singapore above have shown that improving the skills and knowledge of their human resource has enabled them to move towards a knowledge economy, which has in turn raised and sustain their productivity and competitiveness.
Political stability would help to regain investors as well as assure them the clarity and continuity of policy directions. Greater public investments in infrastructure will also boost investor confidence and investments. Public investments would not only inject funds directly into the economy, but better infrastructure services will stimulate further investments and productivity of firms.