KRC sees lending slowdown
Kasikorn Research Centre is forecasting that loan growth this year will rise a mere 3 to 4 per cent, far below the 6-to-8-per-cent growth targeted by the country's big banks.
"The record high oil price, political uncertainty and terrorists in the South are negative factors. The political problems and unrest in the South are extra problems for Thailand as other countries [in the region] have only had to deal with the high price of oil," Pisarn Manoleesagul, the research house's managing director, told reporters yesterday.Many banks missed their loan growth targets in the first quarter, but they have yet to lower the targets for the entire year, he said. Pisarn estimated that Thailand's gross domestic product growth this year would be at 4 to 4.5 per cent, in line with the Bank of Thailand's forecast of 4.25 to 5.25 per cent. Exports will be a major driving force for the country's economic growth, Pisarn said, adding that export growth this year would stay at 17 per cent. Kasikornbank's executive vice president, Boontuck Wangcharoen, admitted that the bank's corporate loans in the first five months this year grew 2 per cent. "But, we are maintaining the target of 12 per cent and I expect this will be achieved by the end of the year," he said. He said bank loans would remain the main source of funding for corporations in the near future, while bond instruments would replace bank loans in the second half as bond yields at that time would be quite stable. "We have a number of customers who want to raise funds by issuing bonds and each has plans to mobilise around Bt10 billion," he said. Amid interest rate hikes, some borrowers have either paid off loans early or refinanced their loans, he said. - Somruedi Banchongduang, The Nation
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