Executive chairman Kosit Panpiemras said BBL was concerned about the ability of borrowers to service their debts and thus had no plans to adjust its lending rate soon. This is in line with chairman Chatri Sophonpanich's earlier statement that the minimum lending rate (MLR) should not exceed 8 per cent per year, or else there could be a negative effect on the bank's customers during the economic slowdown.

However, Kosit said the bank would monitor the market trend for at least the next month before making a decision.

The five other large commercial banks recently increased both their fixed-deposit and lending rates. However, they left savings rates unchanged at 0.75 per cent.

These banks have raised their deposit rates around 25 to 50 basis points and lending rates 25 basis points. As a result, interest rates at BBL, the country's largest bank, are lower than at the other five.

The MLR at BBL is 7.5 per cent per annum, while at Krung Thai Bank (KTB), Siam Commercial Bank (SCB) and Kasikornbank (Kbank), it is 7.75 per cent. Bank of Ayudhya (BAY) and TMB Bank have a rate of 8 per cent.

BBL's minimum overdraft rate (MOR) is 7.75 per cent, compared with 8 per cent at KTB, SCB, Kbank and BAY. TMB's is 8.25 per cent.

The minimum retail rate (MRR) at BBL stands at 8 per cent, while KTB, SCB and Kbank's is 8.25 per cent. The MRR at TMB and BAY stands at 8.5 per cent.

"Although our deposit and lending rates are lower than the other large banks, it's had no impact on us. There are no signs of deposits flowing out, and no lending flowing in either right now. It will take some time to see a clearer picture," said Kosit.

Somruedi Banchongduang

The Nation