Banks warned not to apply ‘blacklist’ to loan applications

BANGKOK, Oct 20 (TNA) – The Bank of Thailand (BoT) has warned commercial banks not to automatically reject loan applications by claiming that customers are blacklisted by the Credit Bureau.

BoT Deputy Governor (Financial Institutions Stability) Krirk Vanikkul said Finance Minister Korn Chatikavanij had called on the central bank to explain and create a proper understanding with financial institutions about commercial banks’ inability to lend or allow other financial transactions in case customers missed payments and were blacklisted by the Credit Bureau.

He believed commercial banks understood what they should do if their customers have been blacklisted in the Credit Bureau.

The banks’ decision to extend loans would be made based on a clear lending regulation.

Normally, they would take into account the debt quality of customers.

“We believe that commercial banks understand well. No banks suppose loans cannot be extended to customers blacklisted in the Credit Bureau because no laws force them to do that. The bureau has a duty just to provide database so the banks can use it to consider the payment conduct of debtors,” he said.

Mr. Krirk said he had the view that the banks themselves should not reject applications for loans by reasoning the applicants are blacklisted. Instead, they should give reasons based on factual information about debtors. (TNA)