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Thailand: KBank, SCB cut prime lending rates
Kasikornbank (KBank) and Siam Commercial Bank (SCB) cut their prime lending rates by 40 basis points on Thursday after the Bank of Thailand lowered the required contribution made by banks to the Financial Institutions Development Fund (FIDF).
The banks’ new prime lending rates will take effect on Friday.
KBank’s minimum lending rate (MLR) will be reduced to 5.60% from 6%, the minimum overdraft rate (MOR) to 6.22% from 6.62% and the minimum retail rate (MRR) to 6.10% from 6.50%, KBank co-president Predee Daochai said in a release.
The bank’s deposits rates will remain unchanged, he said.
The rate cuts are part of KBank’s debt relief measures for customers.
SCB’s new MLR will be reduced to 5.375% from 5.775%, MOR to 6.095% from 6.495% and MRR to 6.345% from 6.745%, said chief executive Arthid Nanthawitthaya.
The latest rate reduction is aiming at alleviating the financial burden of the bank’s retail and corporate customers amid the economic downturn stemming from the coronavirus crisis.
The central bank this week said the rate that financial institutions must contribute to the FIDF would be halved, from 0.46% of deposit base to 0.23%, for two years to encourage financial institutions to immediately pass on cost savings by reducing their lending rates.
Source: https://www.bangkokpost.com/business/1896495/kbank-scb-cut-prime-lending-rates