Four major Thai banks cut loan interest rates to spur economy

The baht notes are counted at the Krungthai Bank in Bangkok (Illustrative image. Photo: AFP/VNA)

Four major banks of Thailand have decided to cut their minimum retail rate (MRR) by 0.25 percentage point to help lower financial costs of small and medium enterprises (SMEs), increase their competitiveness and support the Thai economy.

Their decision takes effective from August 15.

The four banks are Kasikornbank (KBank), Krungthai Bank (KTB), Bangkok Bank (BBL) and Siam Commercial Bank (SCB).

Besides, KBank, KTB and BBL cut the minimum overdraft rate (MOR) by 0.25 percentage point, while SCB cut its MOR by 0.125 percentage point.

BBL director and senior executive vice president Suvarn Thansathit said the bank’s reduction of 0.25 percent in its MOR and MRR was aimed at helping business operators, especially SMEs, to lower their interest rate costs which contribute to business operation costs.

Bangkok Bank is committed to assisting business operators to improve their business efficiency and competitiveness, which will help drive the economy in line with government policies, Suvarn said.

Meanwhile, KBank president Predee Daochai said that the aim was to ease the burden on SMEs and retail clients.

The move by the banks is in line with the central bank’s decision on August 7 to reduce its policy rate from 1.75 to 1.50 percent.  

VNA