About banks & debt
Debt of poor households & failure to make monthly payments rising fast after lenders push loans. Campaign to reduce dangerous debt.
BoT seeks aid for poor debtors
The Bank of Thailand will ask banks and non-bank operators to cooperate in curbing the debts of low-income households because defaults are increasing, says governor Prasarn Trairatvorakul.
The central bank found the indebtedness of borrowers with monthly income of less than 10,000 baht has increased substantially amid campaigns by banks and non-bank operators to promote consumer loans, bringing an increase in one-month defaults, he said.
Loans to borrowers in a slightly higher income bracket of 10,000 to 15,000 baht have brought an increase in indebtedness but not much of a problem with defaults.
"We understand the indebtedness and defaults may result from their low income. In some cases, their level of indebtedness is equal to their monthly income. The central bank's premise is to look after them, not to create too much debt," said Dr Prasarn.
"His comments are in line with National Statistical Office data showing household debt standing at 40%, higher than in many countries."The central bank may ask banks and non-bank operators for their cooperation in improving the consideration process of such lending and not to stimulate consumer lending to low-income customers," said Dr Prasarn.
Banks and non-bank lenders have increasingly engaged in fierce competition in the low-income segment with campaigns to spur consumption. Many people perceive they can use their future money easily, as financial institutions stand ready to offer them a loan.
Dr Prasarn said the central bank will step up efforts to improve knowledge about savings and avoiding too much debt, especially with the Thai and global economies in a downturn.
"Bank and non-bank operators should exhibit social responsibility. We somehow have to revert to the basic principles of save first and spend later, spend what we have or borrow to the amount of repayment ability," he said.
Competition by banks and non-bank operators in this segment has resulted in the creation of various loan types.
(Source: Bangkok Post, ECONOMY, BoT seeks aid for poor debtors, 2/11/2012, Parista Yuthamanop, link)
Debt Problems Vocabulary
debt - an amount of money that you owe หนี้
debtors - people or companies that owe others money
indebtedness - owe money to people, must pay back money to people
the indebtedness of borrowers
loan - an amount of money that a person, business, or country borrows, especially from a bank เงินกู้
offer a loan
default - failure to do pay back borrowed money (debt) on time
defaults are increasing
one-month defaults - failure to make required monthly payment on loan (paying back money borrowed)
an increase in one-month defaults
aid - help or assistance given to someone ความช่วยเหลือ เงินช่วยเหลือ
seeks aid for
BoT seeks aid for poor debtors
operators - businesses doing this business
cooperate (verb) - to work together with other people to achieve a result that is good for everyone involved การร่วมมือกันระหว่าง
cooperation (noun) - working together to achieve shared goals ความร่วมมือ, การทำงานร่วมกัน
income - money that people receive from work or some other source, used for household consumption and savings
households - families or groups of people living together (economics treats this as a unit that makes decisions)
curb - end or reducing something bad
curbing the debts of low-income households
has increased substantially
X amid Y
consumer - someone who buys and uses goods and services ผู้บริโภค
consumption - money spent by households and families on goods and services การบริโภค (See Wikipedia)
promote consumer loans
campaigns - a long series of events staged to achieve a goal or to promote something (for example, an "anti-smoking campaign" or a marketing campaign)
campaigns by banks and non-bank operators to promote consumer loans
bracket - some numbers such ages, prices, etc. being between two mumbers (within a range of numbers)
income bracket - incomes being in a certain range
Loans to borrowers in a slightly higher income bracket of 10,000 to 15,000 baht
premise - an idea or principle that you base other ideas or actions on (used to form new ideas and actions)
The central bank's premise is to look after them, not to create too much debt
household - a group of people, often a family, who live together ครัวเรือน
household debt standing at 40%
data - facts or information used for making calculations or decisions ข้อมูล
National Statistical Office data showing household debt standing at 40%, higher than in many countries
in line with - agreeing with, matching, being same as
His comments are in line with National Statistical Office data
cooperation - when people work together to achieve goals that benefit all of them
ask for their cooperation
consideration - anything of value promised to another when making a contract (under common law both parties must offer some consideration before a contract can be thought of as binding) (See Wikipedia)
process - a series of actions that you take in order to achieve a result แนวทางปฏิบัติ, กระบวน, วิธีการ
lending - giving money to someone who agrees to pay it back in the future การให้ยืม
improving the consideration process of such lending
stimulate - act so as to increase activity กระตุ้น encourage activity, growth, and development
stimulate consumer lending
not to stimulate consumer lending to low-income customers
engaged - actively involved in what you are doing
fierce - very intense and very aggressive
engaged in fierce competition
segment - a part of something ตอน a separate part ส่วนต่างๆของสังคม
lenders have increasingly engaged in fierce competition in the low-income segment
spur - to cause something to happen ก่อให้เกิด
campaigns to spur consumption
financial institutions - banks and other organizations like banks that make loans
stand ready to - are ready to do something (if needed)
stand ready to offer a loan
perceive - to come to an opinion about something, or have a belief about something รับรู้ feeling a certain situation to be true
Many people perceive they can use their future money easily, as financial institutions stand ready to offer them a loan.
efforts - the work done towards achieving some goal ความพยายาม
step up efforts - increase efforts, increase work towards achieving a goal
improve - to make better ทำให้ดีขึ้น
the central bank will step up efforts to improve knowledge about savings and avoiding too much debt,
global - throughout the world, all over the world, including the whole world ทั่วโลก ทั้งโลก
downturn - ระยะตกต่ำ going down fall suddenly by a large amount ตกต่ำลง, ตกต่ำ
economic downturn - a bad economy, with incomes that are not growing and many people unemployed
the Thai and global economies are in a downturn
responsibility - 1. being blamed for something that goes wrong, 2. having to take care of some task as part of your job
exhibit - show แสดง
exhibit social responsibility
Bank and non-bank operators should exhibit social responsibility
principles - the basic rules (of some activity or event) กฎระเบียบเบื้องต้น
save first and spend later
revert to - go back to (something you did in the past)
revert to the basic principles of save first and spend later
spend what we have or borrow to the amount of repayment ability
creation - the act of making something new การสร้าง
the creation of various loan types.