The Bank of Thailand has introduced a new responsible lending (RL) regulation that bans charges for debt prepayment and restructuring across all consumer loan products. The regulation, which comes into effect on January 1, impacts various financial institutions such as banks, non-banks, asset management companies, and specialised financial institutions. However, the ban does not apply to fees for mortgage loan refinancing within the first three years of the loan term.
Suwannee Jatsadasak, the central bank’s assistant governor for the supervision group, clarified that the new regulation applies to all consumer loan products. The Bank of Thailand’s aim is to maintain fair pricing for both service fees and interest rates charged to consumers and borrowers by financial institutions.
On the issue of the wider net interest margin between deposit and…
