The Ministry of Finance will study a proposal by the Bank of Thailand that lending by state-owned banks should be controlled to curb overheated business in some sectors, Somchai Sajjapongse, director general of the Fiscal Policy Office (FPO), said on Wednesday.
The central bank said in its proposal that set targets would not be fully achieved if lending control measures were imposed only on commercial banks, because state-owned banks’ lending accounted for one-third of total lending.
Mr Somchai said lending by state-owned banks is different from lending by commercial banks. Giving loans to retail clients carries more risk. Lending control measures for commercial banks could not be applied to these special task banks.
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