KBank Subsidiaries and ASEAN Economic Strategy slide image

KBank Subsidiaries and ASEAN Economic Strategy

k KASIKORNTHAI Household Borrowing Household Borrowing to GDP ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK % NPL for Consumption Loans of Thai Commercial Banks Old Definition New Definition % of GDP 100 80 71.8 66.2 59.3 60 76.6 79.7 81.2 79.4 78.1 78.4 79.9 80.1 8.5 8.8 8.3 7.5 10.0 10.6 11.3 12.0 12.6 12.7 12.5 12.3 12.2 12.3 % of Loans 25 20 15 8.2 8.3 10 40 24.4 28.9 22.3 21.5 22.4 23.1 23.4 23.1 22.6 22.3 22.3 22.5 19.6 18.9 20 7.7 11.2 15.1 11.9 13.2 13.9 24.5 26.8 29.5 32.3 33.5 34.5 33.7 33.1 33.5 34.3 34.3 5050 3.23 0 2001 2005 2009 2013 2017 1Q20 1994 1996 1997 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 Commercial Banks. SFIs Saving Cooperatives Non-Bank Fls Others Total ■ Household debt to GDP edged up to 80.1% in 1Q20, and is expected to rise further in 2020 Old Definition: Data from 1991 - 1997: lending from commercial banks and SFIs to individual persons for consumption only New Definition: Data from 2010 onwards: takes into account individual persons' outstanding loans from all types of financial institutions, including savings Co-ops and non-banks Cross-Country Comparison of Household Debt (as of 2018)* Debt Service Ratio of Thai households** % of GDP 40% 140 128.6 30% 27.9% 28.1% 27.2% 28.4% 29.1% 120 100.4 100 83.0 78.6 20% 80 67.3 66.0 53.2 60 10% 40 20 0% 2009 2011 2013 2015 2017 0 Australia South Korea Malaysia Thailand Singapore United States China ■Household borrowing to GDP is higher than pre-crisis level, due to factors such as changes in consumer behavior, intense competition among banks, and a more accessible credit market ■Thailand's household debt to GDP is comparable to other countries*; debt service ratio of Thai households is still well below 40%**, indicating the household debt situation is unlikely to trigger any problems in the foreseeable future ■NPL ratio for consumption loans of commercial banks was at 3.23% in 1Q20, vs. 2.90% in 4Q19 Source: BOT, Bank for International Settlements (BIS), National Statistical Office (NSO), CEIC and KResearch บริการทุกระดับประทับใจ K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 169 KASIKORNTHAI BOT Macro Prudential Policy ■New frameworks on retail lending announced by BOT to closely monitor systematic risk and implement preventive actions LTV Criteria for Mortgage Loans (Effective: January 20, 2020) New (Including Top-up loans) Criteria for Credit Card / Personal Loans (Effective: September 1, 2017) Credit Cards Price and Type of Properties 1st Contract NEW LTV Limit OLD (Apr-19) LTV Threshold 2nd Contract 3rd Contract Onwards Lending Criteria New Min.Monthly Income Bt15,000 Old Bt15,000 Personal Loans New Old House ≤ 100%* < Bt10mn Condo. ≤ 100%* ≤ 95% ≤ 90% LTV Limit 80-90% 80-90% LTV Limit 70% 70% Credit Line (times of average monthly income) Income Credit Line Credit Line <Bt30,000 ≤1.5 times Income < Bt30,000 < Bt50,000 ≤3 times ≤ 5 times Credit Line ≤ 1.5 times <3 institutions Credit Line ≤ 5 times > Bt10mn House & Condo. ≤ 90% 80% (LTV Limit) 80% 70% >Bt30,000 ≤ 5 times 1) Under the new framework, LTV limit will be capped at 100% for the first contract of housing loans, and * loans for furniture and decorations can be added up to 10% of collaterals (old - no these conditions) 2) For the second contact, LTV limit is 80% if the first contract's installment payments are less than two years (old - three years); otherwise, LTV limit is 90% 3) Risk weight is 35% if LTV does not exceed its LTV limit; while the risk weight will increase to 75% for the loans for furniture and decorations of the first contract Notes: > Bt50,000 ≤ 5 times For credit card loans, credit line will be raised to 2 times for customers who have monthly income below 30,000 Baht per month, effective until December 2021. Criteria for Car Loans ■ Auto Registration Loans (Effective: February 1, 2019): Auto registration loan providers to be approved by Bank of Thailand and Ministry of Finance Regulated by Fiscal Policy Office Picofinance* Regulated by the BOT August 15, 2019: BOT relaxed the LTV rules for co-signers that have no ownership interest in the home being purchased April 2019: BOT tightened LTV criteria for mortgage loans, and raised down payment for the second contract onwards. Year 2009: BOT announced revised criteria in 2009-2010 on mortgage loan risk weights with a different effective date Year 2008: Risk weights for mortgage loans dropped from 50% to 35% under Basel II Credit Line Pico Plus* Capital Fund Interest Rate Ceiling > Bt5mn Bt50,000 ≤ 36% > Bt10 mn < Bt100,00 <36% for first Bt50,000 > Bt50 mn Depends on debt-servicing ability <28% for the amount in excess of Bt50,000 ≤24% <24% Note: * Picofinance and Pico Plus are allowed to provide loans only in the registered province บริการทุกระดับประทับใจ 170
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