BOT, commercial banks discuss measures to help borrowers

The Bank of Thailand (BOT) on Thursday invited managing directors of commercial banks and representatives of the Thai Bankers Association to discuss measures to help borrowers in a tangible manner.

The meeting explored measures targeting individual customers and SME operators to obtain loans and manage debts under the framework of the Responsible Lending policy that the BOT has implemented since January, Ronnadol Numnonda, BOT assistant governor of financial institutions stability, explained. 

The policy aims to curb non-performing loans (NPLs) mainly by restructuring debts before and after they go bad. It also protects borrowers by prohibiting banks from penalising customers for paying off debts early and helps those in vulnerable groups by turning their overdue debts into instalment loans.

Ronnadol said the central bank has urged commercial banks to strictly follow the Responsible Lending policy and communicate the options, benefits, and criteria of each product to their customers.

The meeting also discussed problems and possible solutions to help borrowers in a practical way and vowed to increase efforts in preventing financial crimes, especially the use of dummy accounts for fraud.

“The BOT hopes that commercial banks will play a crucial role in driving policies to help borrowers so we can ensure an efficient and sustainable result,” he said.

The central bank held a similar meeting last week with executives of non-bank businesses and specialised financial institutions.