Asset warehouse idea to win BoT nod
Banking source suggests support for a system to freeze NPAs in the hospitality sector is likely
The Bank of Thailand has approved in principle commercial banks setting up a bank-owned asset warehouse to freeze non-performing assets (NPAs) in the hospitality sector, according to a banking industry source.
The NPAs would mostly be classified as property assets, such as hotels and serviced apartments, because the hospitality sector has been slammed by the pandemic, according to the source who requested anonymity.
“The central bank is allowing banks to set up their own [asset] warehouse to manage NPAs, rather than setting up a centralised warehouse,” said the source.
“Such an asset warehousing model should shore up confidence for hotel business operators because the asset management…
