Like we said, regulators talk. There are conferences and events where top regulators can meet, greet and share war stories. Today’s read comes from Thailand, though it looks like yesterday’s comments by the Bank of England. …Dateline Bangkok
Thailand’s central bank on Wednesday tightened controls on credit cards and unsecured personal loans, a move that should contain high household debt levels and could cut domestic consumption.
The rule-changes mean credit-card holders can no longer automatically get credit limits of five times their monthly incomes. From Sept. 1, only individuals earning at least 50,000 baht ($1,492) a month can get a maximum spending limit of five times their monthly salary for credit cards.
The solution: Again, a repeat.
Curbs credit line limits for credit cards, personal loans
Cuts maximum credit card interest rate to 18 pct from 20 pct
Thai people started accumulating debts from a younger age, over a longer period, and of a larger amount, BOT Governor Veerathai Santiprabhob said last month, adding the high debt levels were a challenge for households and policymakers. ($1 = 33.51 baht)
We said it before and we’ll say it again: Circle the Wagons and Fortify!
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
Read the full story here