Non-bank credit-card issuers enjoyed rapid expansion last year with 12 adding a total of 164 additional consumer-finance branches or credit centres around the country, according to the Bank of Thailand.

The bank said the number of new branches or credit centres was a 55-per-cent increase on the previous year. There are now 462 non-bank finance centres offering cards, the BOT said.

Three credit services associated with retailers and department stores expanded rapidly during 2006 - in line with retailers efforts to boost sales.

The three are Tesco Card Services, General Card Services and Cetelem (Thailand).

 The year saw 57 consumer-card offices opened in Bangkok, 52 in the Central provinces, 24 in the Northeast and 21 new centres in the North and South.

Central bank assistant governor, supervision division, Samart Buranawatanachoke, was not concerned about the rapid expansion.

He said it indicated people were seeking reputable credit issuers and staying away from loan sharks.

Non-bank card issuers keep the BOT informed of expansion and the bank will not limit them, he added.

"They are currently cautious about lending because they finance funds themselves, not by accepting deposits," he said.

 The BOT has been educating lenders about credit cards and encouraging them to avoid loan sharks charging excessive interest.

The BOT is encouraging loan sharks to go straight and register as non-bank lenders.

Tesco Card Services opened 68 additional consumer-finance branches last year, compared with two branches in 2005. It was the most aggressive of non-bank lenders in its expansion activities.

Of those new branches 21 - accounting for 30 per cent of Tesco Card Services' new credit centres - were in Bangkok.

The Central provinces saw 22 new credit centres and the Northeast 11. In the North the company added eight outlets and six in the South.

The company will increase its interest rate to 20 per cent in February, the maximum allowed by the BOT.

General Card Services opened 15 credit centres compared with two in 2005. It offers the Central MasterCard and Central Card. Of its new outlets 11 were in the capital, two in the South and one each in the Central and North provinces.

Anoma Srisukkasem

 The Nation