The Finance Ministry wants to overhaul lending practices at specialised state banks after discovering bad loan problems at several institutions.
Specialised banks such as the SME Bank or the Islamic Bank of Thailand will be directed to refocus their lending activities on retail customers or small businesses, according to Prasong Poontaneat, the director-general of the State Enterprise Policy Office.
Internal controls and credit analysis functions must also be strengthened, he said. The State Enterprise Policy Office (Sepo) and the Fiscal Policy Office (FPO) are currently leading the review of supervision practices over the state banks.
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