Post by Fletchsmile on May 21, 2015 14:24:53 GMT 7
The title's a bit over dramatic, but yes a couple of bank's have now "trimmed their rates" a little. I wonder if western banks would be so accomodating to their leaders?
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KBank, SCB spearhead rate cuts
Banks' move follows lead by central bank
Kasikornbank (KBank) has cut key lending rates by 13-25 basis points in response to the recent request by Bank of Thailand governor Prasaran Trairatvorakul for commercial banks to help revive the economy.
The country's fourth-largest lender by assets is one of two banks passing on the April 29 policy rate cut by the central bank's Monetary Policy Committee (MPC).
Banthoon: Urges joint action by banks
KBank's minimum lending rate (MLR) has been trimmed by 13 basis points to 6.5% from 6.63% and its minimum overdraft rate (MOR) by 13 basis points to 7.37% from 7.5%. But in a bold move to pass on the policy rate cut in full, its minimum retail rate (MRR) will be slashed by a quarter-percentage point to 7.87% from 8.12%.
The new rates take effect today, chief executive Banthoon Lamsam told an urgent press briefing yesterday, adding that KBank's deposit rates remained unchanged.
Siam Commercial Bank also trimmed its lending rates by 10-30 basis points, effective today. Its MRR has been lowered by 30 basis points to 7.82%, MLR 10 basis points to 6.525% and MOR by 10 basis point to 7.4%.
The MRR is the rate charged for consumer loans including mortgages, so the rate cut will help to ease retail borrowers' interest burden.
Mr Banthoon's announcement came one day after Mr Prasarn called on commercial lenders to pass on the MPC's rate cut.
The policy rate was unexpectedly lowered by 25 basis points for a second successive meeting to 1.5% — a move the central bank described as injecting a harsh drug to shore up the economy — but commercial banks gave a muted response.
Mr Banthoon said the rate cut would certainly affect KBank's revenue but come as a boon to the overall economy.
Amid the economic hardship, banks should band together and move in the same direction to improve the situation rather than engage in disputes, he said, adding that the banking industry was now more concerned about profitability instead of benefiting the country.
Mr Banthoon recalled when he was chairman of the Thai Bankers' Association (TBA) during the 1997 financial meltdown.
The Finance Ministry, the central bank and the TBA worked closely together to seek ways of helping the country get through the crisis even though they had different opinions, he said.
"The Bank of Thailand cut the policy rate a further 25 basis points late last month, but none of the commercial banks followed suit," Mr Banthoon said.
"I don't understand why they've remained silent and let the central bank's governor ask for a market rate cut. They just have a devil-may-care attitude."
He said despite being under enormous pressure, Mr Prasarn had conducted monetary policy prudently to sustain the momentum of economic recovery.
KBANK shares dipped shortly after the lending rate cut announcement as investors fretted over the narrow net interest margin from trimming only lending rates. They plunged seven baht to close the market at 201 baht yesterday, in heavy turnover worth 2.33 billion baht.
Krungthai Bank president Vorapak Thanyawong said KTB had no plans to reduce its lending rates, pointing out that current levels were lower than those of its industry peers. Its MLR is 6.625%, MOR 7.375% and MRR is 8%.
Meanwhile, Krisada Chinavicharana, director-general of the Fiscal Policy Office, said the FPO yesterday summoned executives of state-owned banks and asked them to pass on the lower policy rates.
The FPO plans to use state-run banks as a mechanism to help people and small businesses amid the slowdown, although their combined sizes will be far smaller than that of commercial lenders, he said.
At present, the Government Savings Bank's MLR is 6.75%, MOR 7.25% and MRR 7.625%; the Small and Medium Enterprise Development Bank of Thailand's MLR is 7% and MRR 9.5%; and GH Bank's MLR is 6.75%, MRR 6.85% and MOR 7.25%.
www.bangkokpost.com/business/news/568051/kbank-scb-spearhead-rate-cuts
======================================================
KBank, SCB spearhead rate cuts
Banks' move follows lead by central bank
Kasikornbank (KBank) has cut key lending rates by 13-25 basis points in response to the recent request by Bank of Thailand governor Prasaran Trairatvorakul for commercial banks to help revive the economy.
The country's fourth-largest lender by assets is one of two banks passing on the April 29 policy rate cut by the central bank's Monetary Policy Committee (MPC).
Banthoon: Urges joint action by banks
KBank's minimum lending rate (MLR) has been trimmed by 13 basis points to 6.5% from 6.63% and its minimum overdraft rate (MOR) by 13 basis points to 7.37% from 7.5%. But in a bold move to pass on the policy rate cut in full, its minimum retail rate (MRR) will be slashed by a quarter-percentage point to 7.87% from 8.12%.
The new rates take effect today, chief executive Banthoon Lamsam told an urgent press briefing yesterday, adding that KBank's deposit rates remained unchanged.
Siam Commercial Bank also trimmed its lending rates by 10-30 basis points, effective today. Its MRR has been lowered by 30 basis points to 7.82%, MLR 10 basis points to 6.525% and MOR by 10 basis point to 7.4%.
The MRR is the rate charged for consumer loans including mortgages, so the rate cut will help to ease retail borrowers' interest burden.
Mr Banthoon's announcement came one day after Mr Prasarn called on commercial lenders to pass on the MPC's rate cut.
The policy rate was unexpectedly lowered by 25 basis points for a second successive meeting to 1.5% — a move the central bank described as injecting a harsh drug to shore up the economy — but commercial banks gave a muted response.
Mr Banthoon said the rate cut would certainly affect KBank's revenue but come as a boon to the overall economy.
Amid the economic hardship, banks should band together and move in the same direction to improve the situation rather than engage in disputes, he said, adding that the banking industry was now more concerned about profitability instead of benefiting the country.
Mr Banthoon recalled when he was chairman of the Thai Bankers' Association (TBA) during the 1997 financial meltdown.
The Finance Ministry, the central bank and the TBA worked closely together to seek ways of helping the country get through the crisis even though they had different opinions, he said.
"The Bank of Thailand cut the policy rate a further 25 basis points late last month, but none of the commercial banks followed suit," Mr Banthoon said.
"I don't understand why they've remained silent and let the central bank's governor ask for a market rate cut. They just have a devil-may-care attitude."
He said despite being under enormous pressure, Mr Prasarn had conducted monetary policy prudently to sustain the momentum of economic recovery.
KBANK shares dipped shortly after the lending rate cut announcement as investors fretted over the narrow net interest margin from trimming only lending rates. They plunged seven baht to close the market at 201 baht yesterday, in heavy turnover worth 2.33 billion baht.
Krungthai Bank president Vorapak Thanyawong said KTB had no plans to reduce its lending rates, pointing out that current levels were lower than those of its industry peers. Its MLR is 6.625%, MOR 7.375% and MRR is 8%.
Meanwhile, Krisada Chinavicharana, director-general of the Fiscal Policy Office, said the FPO yesterday summoned executives of state-owned banks and asked them to pass on the lower policy rates.
The FPO plans to use state-run banks as a mechanism to help people and small businesses amid the slowdown, although their combined sizes will be far smaller than that of commercial lenders, he said.
At present, the Government Savings Bank's MLR is 6.75%, MOR 7.25% and MRR 7.625%; the Small and Medium Enterprise Development Bank of Thailand's MLR is 7% and MRR 9.5%; and GH Bank's MLR is 6.75%, MRR 6.85% and MOR 7.25%.
www.bangkokpost.com/business/news/568051/kbank-scb-spearhead-rate-cuts
