BANGKOK, 5 August 2013 The Bank of Thailand (BoT) has reportedly advised commercial banks to raise the amount of money in their reserves as the level of household debts is on the rise.
BoT President Prasarn Trairatvorakul said, despite commercial banks’ positive performance, they need to be aware of external and domestic risks particularly the rising level of household debts which, he said, would consequently increase their financial burden.
He advised the commercial banks to be cautious about providing loans while they should also start raising money in their reserves as a precaution measure to sustain their financial activities in the event of economic downturn.
Mr. Prasan said, in addition, that by following the steps mentioned, Thai commercial banks will become more financially credible in the eyes of the global community. They are also being discouraged from overspending their investment budgets as the currency fluctuation remains a great risk to their financial capacity.
