Krung Thai Bank (KTB), Thailand’s second largest bank, has tightened its credit terms for borrowers and reduced lending in the property sector in a bid to reduce its potential exposure to bad debts during a slow-growing economy, its President told journalists on Monday.
Thailand’s export-dependent economy has been hit by weak external demand, while consumers saddled with record debt at home have curbed spending.
President and Chief Executive Vorapak Tanyawong told Reuters in an interview: “We are concerned. It is like you are sitting in an airplane and the seat belt sign is on.”
The bank is currently taking a more conservative approach to its lending policy as it aims to reduce its non-performing loans to 2.3 percent of total lending before the end of this year. At the end of this month the figure stood at 2.8 percent.