BOT gives nods to local banks to run microfinance

BANGKOK, 15 September 2009 (NNT) – The Bank of Thailand (BOT) has eased tough regulations to allow local commercial banks to run their own micro finance in an effort to gain another 10 percent low-income clients, including consumers and the self-employed.

The Central Bank will give full support to the financial institutions to increase their loan size by rolling out its second master plan, which allows the banks to set up their subsidiaries, resort to cooperation with third financial parties and scrap the interest ceiling system.

The BOT instructed the banks which desire to adopt the second master plan to implement it with separated sheets. Thailand’s Central Bank will also encourage local commercial banks to run more transactions with non-bank institutions.

With the strategies, the BOT emphasized that business loan service in Thailand would grow in the second half of 2009.