Thai commercial banks slash lending rates to ease borrowers’ financial burden

Large local banks have announced reductions for their prime lending interest rates following the Bank of Thailand (BoT)'s policy rate cut, aiming to ease the financial burden for borrowers.

Wednesday, October 23, 2024 16:49

Thai banks have announced reductions for their prime lending interest rates following the Bank of Thailand (BoT)'s policy rate cut. (Photo: AFP/VNA)

Bangkok (VNA) - Large local banks have announced reductions for their prime lending ⭕interest rates following the Bank of Thailand (BoT)'s policy rate cut, aiming to ease the financia🌟l burden for borrowers.

The Bank of Ayudhya (Krungsri) said October 22 it will lower its minimum retail rate (MRR) and minimum lending rate (MLR) by 0.125 percentage points, bringing the MRR down from 7.4% to 7.275% and the MLR from 7.28% to 7.155%. The bank will also reduce its minimum overdraft rate (MOR) by 0.25 percentage points, from 7.575% to 7.325%, effective from November 1. Kenichi Yamato, president and chief executive at Krungsri, said the bank supports the government's efforts to ease the financial burden by lowering lending rates, aimed at increasing liquidity and reducing interest costs for all customer groups.

Bangkok Bank (BBL), the largest lender in the country by total assets, is cutting its MLR and MOR by 0.2 percentage points, bringing them to 6.9% and 7.35%, respectively. It is lowering its MRR by 0.05 percentage points to 7% and effective from October 24. Previously, other major banks, Kasikornbank (KBank), Siam Commercial Bank (SCB) and TMBThanachart Bank (ttb), announced reductions in their prime lending rates, which will be applied from November 1. Despite the lending rate cuts, these banks said they would keep their deposit rates unchanged. KBank, the country's third-largest lender by total assets, will lower its MOR by 0.25 percentage points from 7.59% to 7.34%. The bank's MRR and MLR will each be reduced by 0.12 percentage points, from 7.3% to 7.18%, and 7.27% to 7.15%, respectively.

Ttb plans to lower its MOR by 0.25 percentage points and reduce both its MRR and MLR by 0.125 percentage points. Piti Tantakasem, ttb chief executive, said that the rate cut will reduce the financial burden for vulnerable customers by around 0.375-0.50%. Last week, the BoT’s Monetary Policy Committee approved a 0.25 percentage point reduction in the policy interest rate, from 2.5% to 2.25%, to reduce the debt repayment burden for borrowers./.

VNA

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