Banks advised to exercise business lending based on economic situation

BANGKOK, 26 July 2009 (NNT) – The Director of the Center for Economic and Business Forecasting (CEBF), at the Thai Chamber of Commerce University Mr. Thanavath Phonvichai, recommended seven financial institutions to base their business lending on real demands of economic situations.

Mr. Thanavath said he agreed with the government in extending the loan lending target of seven commercial banks. He said it would help both exporters and investors to have more liquidity.

He recommended banks to release loans in response to the real demand of businesses rather than focusing on reaching the set target in order to avoid non-performance loans [NPLs] as the consequence of overlending if borrowers fail to timely settle their debts,he added.

Mr. Thanavath asserted that clear-cut policies on business lending would regain confidence amongst entrepreneurs and public consumers.