Commercial banks mull interest rate hike

August 29th, 2008 - 2:09 pm ICT by Amrit Rashmisrisethi  

Commercial banks in Thailand are considering the modification of interest rates of both savings and loan accounts in line with the recent increase of interest rates by the Monetary Policy Committee (MPC).

Assistant to Business Customer Manager of Siam Commercial Bank (SCB), Mr. Wiwat Kittiphongkosol (วิวัฒน์ กิตติพงศ์โกศล), reveals that the banks are likely to escalate their interest rates by 0.25 percent as the financial institutions are attempting to ensure sufficient liquidity through fund mobilizations.

Mr. Wiwat says this year may see the competition of saving activities. He says the banks’ interest rate adjustment will create an impact on entrepreneurs’ costs of production, especially those who run small and medium enterprises (SME).

Mr. Wiwat says SME businesses at the moment are experiencing low liquidity but are not facing a non-performance loan (NPL) crisis. He says current political situations result in the reluctant of consumers to spend their money. In this connection, he says SME entrepreneurs must be aware of business deficit and are advised to wait and see the situations prior to loan application.

Source : National News Bureau, Public Relations Department of Thailand

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