Thai banks raise loan, deposit rates following central bank policy hike

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Thai banks raise loan, deposit rates following central bank policy hike

Thai banks, including Siam Commercial Bank (OTC: SMUUY ) (SCB), TMBThanachart Bank (TTB), and Bangkok Bank (BBL), have raised their loan and deposit rates in response to the Bank of Thailand's policy rate increase last week. The central bank hiked its policy rate by a quarter of a percentage point, marking the highest level in a decade.

SCB, the country's fourth largest lender by total assets, reacted to the central bank's move by increasing its prime loan rate by a quarter of a percentage point, effective today. All types of loan rates were also raised, including the minimum retail rate (MRR) now at 7.3% annually, the minimum loan rate (MLR) at 7.05% annually, and the minimum overdraft rate (MOR) at 7.575%. The bank also increased deposit rates by a maximum of 0.3% and hiked digital saving rates by 0.1-0.3% to attract more depositors.

SCB's increased loan rates reflect higher financial costs and align with the rising rates across the industry, said Kris Chantanotoke, SCB's chief executive.

TTB also adjusted its rates in line with the central bank's policy hike. It raised its MLR, MOR, and MRR by a quarter of a percentage point each while increasing the deposit rate for specific accounts and lifting the digital saving rate to its peak at 2.2% per annum. According to Chief Executive Piti Tantakasem, TTB's adjustments are consistent with the central bank's monetary policy direction aimed at maintaining sustainable economic growth, medium-term price stability, and financial stability.

Following suit, BBL, the largest lender in Thailand by total assets, increased both deposit and loan rates. The bank raised all types of loan rates by a quarter of a percentage point per year, including MRR at 7.30%, MLR at 7.10%, and MOR at 7.55%. BBL also increased its deposit rates by 0.10-0.25%, including savings deposits at 0.55% and e-savings deposits ranging between 0.65-1.5%.

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