Rising level of borrowing raises concerns in Thailand

Global Business

Loans from the Non bank sector have risen dramatically across Asia in the past 12 months. In Thailand they account for nearly a third of all household loans, and there is concern about rising levels of borrowing and the impact that might have on the health of these developing economies. CCTV America’s Tony Cheng has more.

Rising level of borrowing raises concerns in Thailand

Loans from the Non bank sector have risen dramatically across Asia in the past 12 months. In Thailand they account for nearly a third of all household loans, and there is concern about rising levels of borrowing and the impact that might have on the health of these developing economies.

More details:

  • The Thai government has just approved licenses for 4 new shadow banks–for people who would normally be turned down for loans.
  • In particular in Thailand, those who need to borrow most at the moment, are those who are least able to repay their debt, and targeting lower income workers could lead to a sharp increase in non performing loans.

Vidak Radonjic on shadow banking
Vidak Radonjic, Managing Partner of The Beryl Consulting Group LLC, joins CCTV to help us break down shadow banking and its effects.

Vidak Radonjic on shadow banking

Vidak Radonjic, Managing Partner of The Beryl Consulting Group LLC, joins CCTV to help us break down shadow banking and its effects.