GSB adjusts standards for loans

State-owned Government Savings Bank (GSB) plans to adjust its loan criteria to collateral-based lending from the current cashflow-based lending to assist people experiencing a liquidity crunch.

The adjustment process should take 1-2 years, said GSB president and chief executive Vitai Ratanakorn.

As Thailand’s economy has been hugely affected by the continuing Covid-19 outbreak, the cashflow-based lending criteria for loan assessment is not applicable over the next 1-2 years because economic activities have been dampened by the pandemic crisis, said Mr Vitai.

Some businesses have had to stop operating temporarily, resulting in losses of income, he said.

Banks previously used the collateral-based lending criteria for…