The state banks guarantee that they will not raise interest rates! “Government Savings Bank” confirms long-term stability, aiming to alleviate the burden for 4.3 million borrowers. Customers can rest assured. Meanwhile, “GH Bank - SME Bank” also voices support for maintaining interest rates.

 

Mr. Chatchai Phanunavichai, Director of the Government Savings Bank, revealed that the bank will not increase loan interest rates even if the Bank of Thailand (BOT) raises the policy interest rate to 1.75%. This decision is made to help customers avoid increasing debt burdens, especially for retail customers, who make up the majority of the Government Savings Bank's clientele, totaling over 4.3 million. This includes small business loans, personal loans, emergency loans to resolve informal debts, and over 300,000 home loan customers who will not be affected, so they can feel at ease.

 

“The BOT's increase in the policy interest rate is a response to global market conditions, which may lead commercial banks to gradually raise deposit and loan interest rates soon. However, state financial institutions will keep interest rates stable for as long as possible and will not lead in raising interest rates. The Government Savings Bank assesses that it can maintain current rates until next year. If the BOT raises rates twice, it will not affect fixed-rate loans, including loans based on reference rates such as MRR and MLR. The trend for the BOT's interest rate adjustments next year is expected to see an increase of 0.5-1%, likely after the election period,” Mr. Chatchai stated.

 

Additionally, the bank has organized the “Government Savings Bank Brings Happiness” campaign to expand its retail loan customer base. Customers who borrow under the shop loan program, franchise loans, and street food loans from December 1, 2018, to August 31, 2019, will have the chance to win prizes, including cars, food trucks, and motorcycles, totaling over 72 prizes over six months. This is expected to increase this customer segment by 135,000.

 

Mr. Chatchai Sililai, Managing Director of the Government Housing Bank (GH Bank), stated that GH Bank will not immediately raise loan interest rates for customers, even though the Monetary Policy Committee has approved a 0.25% increase in the policy interest rate. The bank will monitor the credit market situation again in January before considering adjusting its interest rates, as it does not want to impact over 1 million home loan customers. Initially, it is assessed that if the policy interest rate increases only once, the bank will not raise customer installment payments, and the interest rate may only adjust by half, or about 0.125%. However, if the increase is more significant, it will need to be reviewed again.

 

Mr. Mongkol Leelatham, Managing Director of the Small and Medium Enterprise Development Bank of Thailand (SME Bank), stated that even though the Monetary Policy Committee has raised interest rates by 0.25% from 1.50% to 1.75%, SME Bank will maintain its loan interest rates for entrepreneurs until the end of February 2019 to give time for 100,000 SMEs to adjust, as an increase in loan interest rates would impact their costs.

 

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