🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Thai banks raise loan, deposit rates following central bank policy hike

EditorHari Govind
Published 2023/10/03, 09:58
SETI
-
BBL
-
BTS
-
TTB
-
SBS
-
SCBB_p
-

Thai banks, including Siam Commercial Bank (OTC:SMUUY) (SCB), TMBThanachart Bank (TTB), and Bangkok Bank (BBL), have raised their loan and deposit rates in response to the Bank of Thailand's policy rate increase last week. The central bank hiked its policy rate by a quarter of a percentage point, marking the highest level in a decade.

SCB, the country's fourth largest lender by total assets, reacted to the central bank's move by increasing its prime loan rate by a quarter of a percentage point, effective today. All types of loan rates were also raised, including the minimum retail rate (MRR) now at 7.3% annually, the minimum loan rate (MLR) at 7.05% annually, and the minimum overdraft rate (MOR) at 7.575%. The bank also increased deposit rates by a maximum of 0.3% and hiked digital saving rates by 0.1-0.3% to attract more depositors.

SCB's increased loan rates reflect higher financial costs and align with the rising rates across the industry, said Kris Chantanotoke, SCB's chief executive.

TTB also adjusted its rates in line with the central bank's policy hike. It raised its MLR, MOR, and MRR by a quarter of a percentage point each while increasing the deposit rate for specific accounts and lifting the digital saving rate to its peak at 2.2% per annum. According to Chief Executive Piti Tantakasem, TTB's adjustments are consistent with the central bank's monetary policy direction aimed at maintaining sustainable economic growth, medium-term price stability, and financial stability.

Following suit, BBL, the largest lender in Thailand by total assets, increased both deposit and loan rates. The bank raised all types of loan rates by a quarter of a percentage point per year, including MRR at 7.30%, MLR at 7.10%, and MOR at 7.55%. BBL also increased its deposit rates by 0.10-0.25%, including savings deposits at 0.55% and e-savings deposits ranging between 0.65-1.5%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.