Thailand Ponders Curbs on Easy Auto Loans

April 09, 2019 at 1:20 AM

Thailand’s central bank may decide by June whether to tighten lending rules for auto loans to  control spiraling household debt levels, the Bangkok Post reports.

The Bank of Thailand notes that the volume of new-car loans grew 8% in 2017 and 13% last year. The bank launched a review of loan quality criteria after noting marketing campaigns that offered cash back and other incentives on auto loans.

The ratio of delinquent loans rose to 1.7% last year from 1.6% in 2017, according to the bank. Its data also indicate that household debt grew to 12.8 trillion baht ($402 billion) at the end of last year, or 78% of seasonally adjusted gross domestic product.