KASIKORNTHAI Regulatory Capital and Financial Performance Update

K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK BOT's Directional Papers on Sustainable Resolutions of Household Debts 1 Existing NPLs (esp. those related to COVID-19) 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 1 Jan 2024 Responsible Lending Issue regulations to ensure responsible lending at all stages of indebtedness Encourage creditors to provide guidelines to assist borrowers, such as debt restructuring, especially existing NPLs 2 Hard-to- solve/persistent debts Starting with persistent debts from express/speedy cash and elderly customers Helping debtors to make practical debt repayment plans 1 Apr 2024 3 Fast debt creation with 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) Upcoming additional Debt Service Ratio or DSR and LTV ratios to ensure debtors' daily- life survival Risk-based pricing Promote responsible borrowing through literacy Effective date Persistent Debt: PD (Opt-In basis) General PD borrowers are those indebted consecutively for 3 years, borrowers will be urged to make larger monthly payments. Severe PD borrowers are indebted consecutively for 5 years. Participant in the scheme could be able to exit debt cycle within 5 years with interest rates not exceeding 15% per year Source: BOT, as of 14 February 2023 and 21 July 2023 . 1 Jan 2025 Debt-service ratio (DSR), effective timeline depending on economic situation monthly income below Bt30,000: monthly payment for existing and new loans cannot exceed 60% of monthly income monthly income above Bt30,000: monthly payment for existing and new loans cannot exceed 70% of monthly income บริการทุกระดับประทับใจ 4 . . • . Other debts not 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) Risk-based pricing 2Q25 at the earliest Risk-based pricing (RBP) Submit plans in 1Q24 Be tested in sandbox in 2Q24 Regulatory sandbox (1-2 years) K KASIKORNTHAI BOT's Responsible Lending framework and Timeline Responsible Lending framework ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Intended outcome: Responsible and fair credit service providers throughout the period of indebtedness (end-to-end process) Before/About to go into debt During debt Becoming troubled debt Selling debt Responsible Lending guideline should be implemented under appropriate management Nudge: Financial Literacy and discipline Advertisement Product offering Product development Considering affordability Q3 2023 Q4 Q1 Information Commitment tools Resolving persistent debt Debt restructuring and troubled debt restructuring Incentive Litigation and debt transferring Timeline (Tentative) 2024 Q2 Q3 Q4 2025 Q1 Q2 Responsible Lending (beginning on January 1, 2024) Borrowers with minimum monthly income of Bt20,000 Banks Non-banks Consultation paper and public hearing Release regulations Borrowers with minimum monthly income of Bt10,000* *Impact will be considered in order to further adjust conditions within one year. Risk-based pricing (RBP): 1Q24: RBP Plan proposed by Financial institutions; 2H24: Open the Regulatory sandbox (1-2 years) Debt-service ratio (DSR), depending on the economic situation บริการทุกระดับประทับใจ 161 162

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