Kiatnakin Phatra Financial Group (KKP), the holding company of Kiatnakin Bank, is offering sustainable financial services with a focus on the real estate sector, providing green loans to both commercial and individual customers.
Real estate is one of the bank’s key business segments. Kiatnakin is transitioning to sustainable finance, in line with the central bank’s taxonomy, which is a reference tool for the country’s sustainable economy, said KKP chief executive Aphinant Klewpatinond.
Under the Bank of Thailand’s taxonomy, the regulator requires domestic systemically important banks (D-SIBs) to assist customers in transitioning to sustainable finance, initially focusing on the energy and transport sectors.
This focus will later expand to include agriculture, real estate and construction in the second phase.
However, the central bank does not mandate specific industries for small to medium-sized banks.
There are six D-SIBs in Thailand: Bangkok Bank, Krungthai Bank, Siam Commercial Bank, Kasikornbank, Bank of Ayudhya and TMBThanachart Bank.
Kiatnakin, with total assets of 532 billion baht, is classified as a small bank.
Mr Aphinant said the bank has not set specific short-term targets for sustainable and green loan growth, but will offer these services in line with customer demand and the bank’s capabilities during the sustainable transition.
Surat Leelataviwat, head of commercial lending at Kiatnakin, said the bank’s outstanding real estate loans amount to around 25 billion baht, representing 43% of the total commercial loan portfolio of 58.5 billion.
The bank will continue to provide advice and sustainable financial services to clients, mainly mid-sized developers, he said.
R&D is another area the bank is focusing on to support its customers.
Using in-depth analysis, Kiatnakin can offer better advice to developers on location, pricing, project feasibility and business sustainability, said Mr Surat.
Mid-sized developers typically do not have the same data and research advantages as larger operators.
The bank aims to enhance its R&D to support these customers, he said.
“With deeper and more comprehensive information and advice, the bank can help customers
develop products that better meet homebuyers’ requirements,” said Mr Surat.
“This effort should bolster the bank’s expansion of property and mortgage loans amid subdued demand and intensified competition.”
He said developers have slowed new investment projects because of weaker homebuyer demand as the economy sags.
Kiatnakin will monitor the economy, including the government’s short-term stimulus packages and the property market in the second half of the year, said Mr Surat.