Finance Minister Apisak Tantivorawong (Bangkok Post file photo)Finance Minister Apisak Tantivorawong is calling on commercial banks to narrow their interest spreads, saying the interest gap between large and small businesses is too large. "Amid economic hardship, we allow financial institutions to have a large interest gap, comparing it to a heart that pumps blood throughout the body," Mr Apisak said. "Once our heart is strong, financial institutions must tackle the issue [the interest gap] to create a level playing field." Bank of Thailand governor Veerathai Santiprabhob said wide interest spreads are a problem that has "lingered for a long time and we're trying to solve it step-by-step". Banks set their interest rates according to the Bank of Thailand's policy rate, which is expected to be kept unchanged at 1.5% this year.

Source: Bangkok Post May 12, 2017 01:01 UTC