Thai bankers cut MRR for six months to help retail customers, SMEs
The Thai Bankers' Association has reduced interest rates by 0.25 percentage point for prime retail customers identified as vulnerable.
This reduction applies to both individual and SME customers and will be effective for a period of six months, the association said.
The move follows a meeting of representatives from the association with Prime Minister Srettha Thavisin on Tuesday to exchange perspectives on the current economic situation, household debt, as well as additional assistance measures to alleviate the hardships faced by vulnerable groups.
At the association's committee meeting on Wednesday, there was recognition of the necessity to implement additional assistance measures for vulnerable customers, as the economy has not recovered fully. As a result, it was decided to reduce the Minimum Retail Rate (MRR) by 25 basis points for a period of six months for both individual customers and small and medium-sized enterprises in the vulnerable group.
"This reduction aims to alleviate the burden of interest payments and provide an opportunity for recovery and adjustment," Phayong Sriwanit, president of the association said.
This measure aligns with the government's economic stimulus efforts, which include both short-term support measures to facilitate transitions and medium-to-long-term structural adjustments. It corresponds with sustainable debt solutions and responsible lending practices advocated by the Bank of Thailand, Phayong said.
The member banks will expedite their assessment and prepare their systems to meet the needs of vulnerable customers according to the appropriate context as quickly as possible.
"As integral parts of the large-scale industry in the financial and capital markets, the Thai Bankers' Association and its member banks prioritise customer care and recognise their responsibility towards society and stakeholders at large,” Phayong said.
“Assistance provided to customers, the public, and small-scale entrepreneurs also relies on collaboration from other sectors of the economy. Long-term measures for economic structural adjustments were essential to enhance competitiveness and foster sustainable and sufficient income generation," Phayong added.
