Tuesday, August 04, 2020

Banks step in with relief measures amid virus impacts on clients

Feb 14. 2020
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Commercial banks have been monitoring impacts of the coronavirus outbreak on its clients and have provided them with relief measures to avert a rise in non-performing loan (NPL).

Krungthai Bank President Payong Srivanich said the bank's NPL level would likely increase slightly from 4.3 per cent as of the end last year while blaming the declining economy.  

 The bank has stepped in by restructuring the debt of some clients or cutting the loan rate in a proactive move to keep the lid on NPL, he said.

 It has yet to revise down its loan growth target this year, from  between three per cent and five per cent.

  The bank believes the economic situation will improve once the goverment starts disbursement of the 2020 fiscal budget.

  On the Bank of Thailand's plan to introduce new guidelines for service fee calculation, Payong said it would only have a slight impact on KTB.

  The central bank is expected to launch the guidlines in the third quarter.

  TMB chief executive officer Piti Tantakasem said the risk factors, including coronavirus outbreak, could affect income of the banking sector.

  Despite the  risks and uncertainties, he believes TMB would meet its loan growth target this year.

  He added that the bank was prepared in managing the bad debt and reduce it as much as it can.

 The new guidelines on calculating all types of banking service fee is not a major concern to TMB, he added.

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