Banks and non-banks continued to tighten their personal loan lendings to keep their non performance loans low.
This was revealed by Mrs Sudaporn Janwatanakul, executive vice president of personal loans business at Krungthai Card PCL (KTC).
She said personal loans are expected to expand just 3% to 5% this year, because domestic purchasing power has not yet recovered, and spending remains slow.
Meanwhile both banks and non-banks have also tightened their lending criteria in a bid to keep their nonperforming loans low with loan approval rates standing only at 30%.
But she was optimistic that the situation is expected to improve in the second quarter, citing the beginning of a new school semester when parents have to buy new school uniforms and stationery for their children.
Also, public holidays will give a boost to tourism during the period, she said.
Source: Thai Public Broadcasting Service (Thai PBS)