The Thai Bankers’ Association (TBA) said in a statement on Thursday that the Thai banks will slash the minimum retail rate for loans by 25 basis points for vulnerable groups for a period of six months.The minimum retail rate for loans ranges from 6.5% to 9% among Thai banks .
The move of TBA, responding to the government request to assist small businesses.
Prime Minister Srettha Thavisin on April 23 had asked four largest Thai banks to lower their lending rate.
The bank’s rate cut will be for both individual and small and medium enterprises customers. And will help reduce their interest burden and support their recovery, TBA said in a statement.
“Thailand member banks will expedite consideration of implementing the aforementioned principle and prepare the work system to answer the needs of vulnerable customers of each bank in the appropriate contexts as quickly as possible.” TBA said.
Mr Settha said on Tuesday that vulnerable groups like SMEs have a problem with high interest rates.
Four banks are Bangkok Bank, Kasikorn Bank, Krungthai Bank and SCBX.
TBA reported the move is in line with the government’s direction to drive the economy and conforms to the Bank of Thailand ’s responsible lending. It was up to each participating bank to decide when they would implement the measure.
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