The Thai Bankers Association moves forward to help vulnerable customers.

Bangkok, The Thai Bankers Association continues to help vulnerable customers. Conforms to measures for responsible and fair lending (Responsible Lending) Mr. Phayong Sriwanich, President of the Thai Bankers Association, revealed that the Thai Bankers Association and member banks Focus on helping debtors through sustainable debt solutions. In the past, the banking sector has continually provided assistance to bank debtors. Especially during the COVID-19 situation. and adjust to specific assistance measures after the economic situation improves. By adhering to the principles of comprehensive and sustainable assistance, to date, there is still a total debt burden that banks and financial institutions have assisted at more than 3.4 trillion baht, or more than 6.1 million accounts. The banking sector is aware of the household debt problem. that affects the lives and livelihoods of the people stability and economic growth Therefore, together with relevant agencies, we continuously issue measures to assist debtor s in debt restructuring. including existing measures to take care of vulnerable debtor groups and additional measures appropriate for each period. For 2024, it will be taking care of debtors in line with responsible and fair lending (Responsible Lending) that places importance on taking care of debtors before they become indebted. while in debt and solving debt problems Under the cooperation of the Thai Bankers Association and the Bank of Thailand (BoT), which has 3 standard guidelines: 1. Continuously help debtors with debt restructuring. It will propose guidelines for debt restructuring for debtors who have begun to have problems repaying their debts but have not yet been NPL at least 1 time. Debtors who have had problems repaying debts that were NPL at least 1 time, provided that the debtor has not transferred the debt before the expiration of 60 days. From the date of the proposed conditions for debt restructuring 2. Help chronically vulnerable debtors To be able to close the debt by chronically vulnera ble debtors Will receive assistance to pay off debt faster within 5 years and reduce the interest burden that will occur. With an interest rate not exceeding 15% per year 3. Protect debtors' rights more fairly. No penalty for early redemption of loans. For all types of personal loans Except in the case of refinancing a home loan during the first 3 years and other fees that do not comply with BoT regulations. Debtors will receive important information that is accurate, complete and comparable. through advertising media Offering and debt settlement Including not charging interest on interest for loans given to small debtors. (Including current accounts of loans, overdraft loans) This is in order to solve household debt problems efficiently and sustainably. Debtors also need to adjust. Increased financial discipline and choose to use credit products to suit the objectives, such as not using revolving credit lines for unnecessary and excessive consumption to the point of being unable to pay off debt in each ins tallment, etc. For this reason, the banking sector places importance on providing knowledge financial services to citizens at all levels To have a correct understanding of financial discipline. Understand the importance of credit information and put into practice Causes good financial behavior Build financial immunity It is a shield against financial dangers that come in all forms. change quickly and leads to financial planning for long-term stability The Thai Bankers Association and its member banks also emphasize the importance of pushing for solutions to structural problems due to Thailand's large informal economy, which is one of the key factors causing the Thai economy to grow below its potential or its potential may decline. It also creates a lack of access to credit and high inequality. This leads to reliance on expensive external debt. Therefore, a sustainable solution must be solved by bringing economic activity back into the system as much as possible. Promote free, non-monopoly competition. On the basis of having information, transparency and equal rules between all groups of credit service providers. Whether it be banks, non-banks, cooperatives, by accelerating the reform of debt information both inside and outside the system. Create a more complete and reliable database by allowing cooperatives to fully enter the national credit information system. Including the use of other alternative data. The banking sector hopes to better assess the potential of the self-employed and merchants in terms of their ability or willingness to repay their debts. In the past, credit has often been rejected from service providers in the system even when applying for a small loan amount. Because there is no information showing income No regular income no collateral There is no information on history of payment of utility bills, etc., to be used to assess income that is appropriate and consistent with debt generating capacity and ability to repay debt efficiently. Therefore, if the debtor wishes to restructure debt or ask for advice on solving debt problems You can contact the bank through Call Center branches and loan officers. or the department that takes care of debtors' loans. Source: Thai News Agency