Household Loans Spark Fears of a Property Bubble in Thailand

CEIC Macro Watch: The recent high increases in loans to households have raised some concerns about the robustness of the banking sector in Thailand. While household loans from commercial bank loans amounted to about 3.91 trillion Thai bahts (THB), as of the second quarter of 2013, total household loans from all financial institutions amounted to THB 9.28 trillion during the same period, inclusive of loans from specialised depository institutions and saving cooperatives – which are the largest lenders after commercial banks. Of note, however, has been the increase in loans from credit card, leasing and personal loans companies, which account for approximately 10% of total household loans. Loans in this category have been increasing in excess of 30% year-on-year since the fourth quarter of 2012. Analysts fear that these increases are symptomatic of a bubble in the housing market. After three consecutive quarters of double-digit year-on-year growth rates, outstanding personal housing credit extended by commercial banks was reported to be THB 1.40 trillion as of the second quarter of 2013, 12.22% higher compared to the year earlier period and having doubled since 2007. Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. By Anchalee Prasertkoon in Thailand - CEIC Analyst Back to Blog
31st October 2013 Household Loans Spark Fears of a Property Bubble in Thailand

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