BOT, credit bureau warn against scrapping debtor blacklist

Opposition from a senior BOT official and the NCB chief came after the Chart Pattana Kla Party issued election posters with a photo of party leader Korn Chatikavanij accompanied by the slogan “To abolish bureau blacklist, to overhaul credit system”.

However, Korn had previously explained that his party’s policy is for banks to use a “credit score” system instead of the NCB blacklist when assessing customers who apply for loans.

Korn, a former finance minister himself, explained that new loan criteria are required because millions of Thais have been blacklisted by the bureau after failing to make debt repayments amid the pandemic and cost-of-living crisis.

Korn said the credit bureau has begun collecting credit-score data but financial institutions still prefer the blacklist when considering loan requests.

The credit score system should include data on debtors’ incomes and expenses, he added. For example, a Grab Food rider who works 10 hours per day every day should receive a higher credit score to reflect his/her diligence in seeking income.

Apparently based on a misunderstanding of the campaign signs, Tharit Punpiamrat, BOT assistant governor, said the BOT disagreed with scrapping the NCB credit blacklist.

Tharit said the NCB’s credit information acted as a grade book for debtors that directly reflected their performance.

He said wiping the blacklist would also undermine the credibility of the Thai banking system while borrowers would find it harder to obtain loans if credit information disappeared from the system.

Surapol Opassatien, managing director of the NCB, said the finance system would be affected if the blacklist was wiped as banks would lack information for considering loans.

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Thailand needs credit-score system as millions blacklisted for loans: Korn