Prime Minister Srettha Thavisin had an informal meeting with the CEOs of four of Thailand’s top banks at Government House this morning, reportedly to ask them to consider cutting their lending rates for “fragile” groups, such as small entrepreneurs.
The meeting, before the start of the cabinet meeting, lasted about 30 minutes.
The prime minister told the media that he had invited Chartsiri Sophonpanich (Bangkok Bank), Payong Srivanich (Krung Thai Bank), Kattiya Indaravijaya (Kasikornbank) and Arthid Nanthawithaya (Siam Commercial Bank) to discuss, informally, the general economic situation and the high policy interest rate in particular.
Since he has known these four bankers for almost two decades, the prime minister said that he asked them whether it would be possible for them to reduce their lending rates to help those who are suffering under high interest rates.
The meeting was not about competition over how much each bank can cut their rates, said the prime minister, adding that he would like them to demonstrate their solidarity about how they can help in this matter.
Asked if there is a timeframe for their response, the prime minister said that he did not press them for an answer, adding “We just looked into each other’s and knew what we want from one another”.
The government has been urging the Monetary Policy Committee of the Bank of Thailand to cut the 2.5% policy rate by 25 basis points, to ease the financial burden on borrowers. Nonetheless, the committee, at its most recent meeting on April 10th, resolved to maintain it at 2.5%.
