Post by account_disabled on Dec 30, 2023 5:56:11 GMT 1
Partly because commercial banks and financial business operators that are not banks (non-banks) continue to expand lending to households. Especially credit card loans and personal loans. Therefore, certain groups of households with more fragile financial status must be followed. Households are especially sensitive to negative income factors, such as reduced employment and working hours. At the same time, the quality of SME business loans continues to deteriorate. The problem of non-performing loans has begun to spread from small businesses that were previously highly fragile to larger businesses. Under a situation where the economy tends to slow down and businesses face structural changes. The meeting agreed that taking care of household and SMEs debt problems requires integrating cooperation from all sectors and must take a holistic approach, both preventive and corrective. Including paying attention to debt restructuring that has existing problems. In the past, the Bank of Thailand (BoT) asks for cooperation from financial institutions in granting loans appropriately according to the borrower's ability to repay debt and livelihood.
Including asking to take care of debtors from the beginning when they see signs of deteriorating debt repayment ability so that they do not become bad debts in the future and to accelerate the debt restructuring of SMEs debtors, groups that have potential but temporarily lack liquidity in order to be able to operate their businesses. can be continued. In addition, the BoT together with the company Telegram Number Data Sukhumvit Asset Management Co., Ltd. expanded the scope of the debt clinic project to cover debtors with a single creditor and those undergoing litigation. In the next phase, the meeting agreed that it would be a good idea to study additional ways to help potential debtors in a wider circle. 3) Under the environment of low interest rates continuously for a long time It was found that there was an accumulation of fragility in both fundraising and search-for-yield behavior. That is, (1) the business sector increased in issuing high-yield bonds in the Banks are cautious in granting loans to businesses. and bond funds with a project maturity (term funds) that invest abroad have high investment concentration in some countries and some issuers.
The majority of these instruments are held by individual investors, who may not be fully informed about the risks of the products. The Securities and Exchange Commission (SEC) has therefore raised the level of supervision of mutual funds and debt issuance. Including close monitoring By adjusting the criteria for offering and providing financial product information to investors. To ensure that investors receive sufficient information and advice appropriate to the level of risk acceptable to each type of investor, and (2) large business groups raise funds especially through issuing more debt instruments. This causes the bond market to have higher concentration of risk in large business groups. In addition, risk assessment of large business groups is difficult. Because business and financial structures are complex. Taking care of risks in this area therefore requires close cooperation between regulatory agencies. The insurance business also faces pressure on profitability in an environment of low interest rates. In the past, the insurance business has adjusted both in terms of investment assets and product launches that emphasize protection instead of guaranteed returns. The Office of the Insurance Commission (OIC) has revised the criteria. To help adjust the insurance business including adjusting investment criteria to be able to expand investment outside of the ASEAN region and providing accurate and sufficient information to consumers to support adjustments in insurance products that aim to provide more protection.
Including asking to take care of debtors from the beginning when they see signs of deteriorating debt repayment ability so that they do not become bad debts in the future and to accelerate the debt restructuring of SMEs debtors, groups that have potential but temporarily lack liquidity in order to be able to operate their businesses. can be continued. In addition, the BoT together with the company Telegram Number Data Sukhumvit Asset Management Co., Ltd. expanded the scope of the debt clinic project to cover debtors with a single creditor and those undergoing litigation. In the next phase, the meeting agreed that it would be a good idea to study additional ways to help potential debtors in a wider circle. 3) Under the environment of low interest rates continuously for a long time It was found that there was an accumulation of fragility in both fundraising and search-for-yield behavior. That is, (1) the business sector increased in issuing high-yield bonds in the Banks are cautious in granting loans to businesses. and bond funds with a project maturity (term funds) that invest abroad have high investment concentration in some countries and some issuers.
The majority of these instruments are held by individual investors, who may not be fully informed about the risks of the products. The Securities and Exchange Commission (SEC) has therefore raised the level of supervision of mutual funds and debt issuance. Including close monitoring By adjusting the criteria for offering and providing financial product information to investors. To ensure that investors receive sufficient information and advice appropriate to the level of risk acceptable to each type of investor, and (2) large business groups raise funds especially through issuing more debt instruments. This causes the bond market to have higher concentration of risk in large business groups. In addition, risk assessment of large business groups is difficult. Because business and financial structures are complex. Taking care of risks in this area therefore requires close cooperation between regulatory agencies. The insurance business also faces pressure on profitability in an environment of low interest rates. In the past, the insurance business has adjusted both in terms of investment assets and product launches that emphasize protection instead of guaranteed returns. The Office of the Insurance Commission (OIC) has revised the criteria. To help adjust the insurance business including adjusting investment criteria to be able to expand investment outside of the ASEAN region and providing accurate and sufficient information to consumers to support adjustments in insurance products that aim to provide more protection.