Bangkok: Siam Commercial Bank and Kasikornbank have announced reductions in their lending rates following the Monetary Policy Committee’s policy interest rate cut, set to take effect from November 1, 2024.
According to Thai News Agency, Siam Commercial Bank and Kasikornbank have decided to reduce their maximum lending rates by 0.25% per year, aligning with the Monetary Policy Committee’s recent decision to decrease the policy interest rate from 2.50% to 2.25% per year. This move aims to support the Thai economy, which is expected to grow at a modest pace this year, and to help alleviate the financial burden on both retail customers and business operators.
Mr. Kris Chantanotok, Chief Executive Officer of Siam Commercial Bank PCL, detailed that the bank would lower the interest rates for various customer categories. The rate for prime large customers in the overdraft category will be reduced from 7.575% to 7.325% per year, for prime retail customers from 7.30% to 7.175% per year, and for prime large customers
in the term loan category from 7.05% to 6.925% per year. Furthermore, the bank has extended its special measures to assist vulnerable customers, including individuals and SMEs, until December 31, 2024, ensuring ongoing support and adaptation opportunities for its clientele.
Similarly, Mr. Jongrak Rattanapian, President of Kasikornbank (KBANK), announced the bank’s readiness to implement the MPC’s rate cut by adjusting its own rates to boost liquidity and support economic stability. KBANK has lowered its rates for prime large customers in term loans from 7.27% to 7.15%, in overdrafts from 7.59% to 7.34%, and for prime retail customers from 7.30% to 7.18%. Notably, the bank has not adjusted its deposit interest rates. These changes are designed to reduce the financial strain on customers, particularly retail clients and small entrepreneurs, and to foster sustainable economic growth amidst varied sectoral growth and persistent risk factors.