KBank's Strategic Acquisition in Muang Thai Group Holding
K
KASIKORNTHAI
ธนาคารกสิกรไทย
开泰银行 KASIKORNBANK
BOT's Directional Papers on Sustainable Resolutions of Household Debts
1
.
Existing NPLs
Hard-to-
(esp. those related to
COVID-19)
2
solve/persistent
3
Fast debt
creation with
Accelerate Troubled
Debt Restructuring or
TDR (SFIs, non-bank
and banks)
Debt counselling
services from
creditors
Debt mediators
Voluntary bankruptcy/
rehabilitation filing by
debtors made
possible
Source: BOT, as of 14 February 2023
debts
Starting with
persistent debts
from
express/speedy
cash and elderly
customers
•
Helping debtors to
make practical debt •
repayment plans
high default
risks
Being agri-related debts,
credit cards and personal
loans
Responsible lending (e.g.
restriction on product PR, fair
contracts, control of debt
purposes)
Other debts not
4 yet
Upcoming additional Debt
Service Ratio or DSR and LTV
ratios to ensure debtors' daily-
life survival
Risk-based pricing
•
.
Promote responsible
borrowing through literacy
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yet being included
in household
debts
Such debts include
Student Loans,
other cooperatives
or Co-Op (Bt0.7trn;
4.3% of GDP) and
loan shark
Open data to
promote financial
inclusion (e.g.,water
and electricity bill
info)
A possible lift in
interest rate ceiling
Risk-based pricing
159
K
KASIKORNTHAI
BOT Macro Prudential Policy
ธนาคารกสิกรไทย
开泰银行 KASIKORNBANK
■New frameworks on retail lending announced by BOT to closely monitor systematic risk and implement preventive actions
LTV Criteria for Mortgage Loans
(Effective: January 1, 2023)
New (Including Top-up loans)
Criteria for Credit Card / Personal Loans
(Effective: September 1, 2017)
Credit Cards
Lending Criteria
Price and
Type of Properties
1st Contract
NEW
2nd
Contract
3rd Contract
Onwards
Min.Monthly Income
New
Bt15,000
Old
Bt15,000
Personal Loans
New
Old
LTV Limit
LTV Limit
LTV Limit
House
≤ 100%*
< Bt10mn
Condo.
≤ 100%*
80-90%
80-90%
70%
70%
Credit Line
(times of average
monthly income)
Income Credit Line Credit Line
<Bt30,000 ≤1.5 times
Income
< Bt30,000
> Bt10mn
House &
Condo.
< Bt50,000 ≤ 3 times
> Bt50,000 ≤ 5 times
≤ 5 times
>Bt30,000
Credit Line
≤ 1.5 times
≤ 3 institutions
≤ 5 times
Credit Line
≤ 5 times
≤ 90%
80%
70%
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) Prior to October 20, 2021, 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:
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
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
Regulated by the BOT
Picofinance*
Pico Plus*
Capital Fund
Credit Line
> Bt5mn
> Bt10 mn
> Bt50 mn
Interest Rate
Ceiling
< Bt50,000
≤ 36%
< Bt100,00
36% for first Bt50,000
<28% for the amount in
excess of Bt50,000
Depends on debt-servicing ability
≤ 24%
≤24%
Note: * Picofinance and Pico Plus are allowed to provide loans only in the registered province
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