Find out what analysts from Asian Development Bank has to say.
According to a report, Thai banks are wary of high funding costs. The banks are also challenged to meet the loan demand while keeping fund costs as low as possible.
But according to Dr. Luxmon Attapich, Senior Country Economist, Thailand Resident Mission at Asian Development Bank, Thai banks aren't complaining about higher funding costs and the policy interest rate (1-day repurchase rate) is not high and is not on the rise.
"Thai banks are profitable and performing well. It's true there's increased competition for deposits. Although it means higher costs for banks, it's also a reflection of innovations taking place in the banking sector which benefit depositors and consumers. A focus on the interest spread alone probably oversimplifies things."
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