BoT expects lending to surge in 4th quarter

BANGKOK, Sept 22 (TNA) – Lending by commercial banks is set to pick up in the second half of this year, particularly in fourth quarter, in tandem with the expected economic recovery, according to the Bank of Thailand (BoT) Deputy Governor Bandid Nijathaworn.

Speaking after a meeting with top bankers on economic and financial conditions, he said the bankers shared a view in common with the BoT that the number and size of loans extended would increase, especially in the fourth quarter this year, because exports are expected to recover, trade in the farm product to rise, production to rebuild stocks to increase, and state spending to gain momentum.

“Revolving credit for business operations showed sign of improvement in August after the first seven months of this year saw gross loans drop by Bt212 billion or 3.68 per cent from those of December 2008.

“Because of this, we advise commercial banks to reduce constraints on access to loans, particularly in regions where many lending restrictions are found,” Mr Bandid said.

Whether the government’s move to have state-owned banks speed up implementation of the fast-track loan program would help expand lending and turn it into positive, he said, depends on economic conditions and the loan demand by the private sector.

Should the loan demand be too small, he said, the injection of money into the system might not meet the actual need. (TNA)