Interest rate strategy and tackling household debt
On the matter of commercial banks cooperating with the Khun Soo, Rao Chuai scheme, Rung explained that participation varied depending on the type of debt. For example, mortgage debt with payment delays of under three months received a strong response from banks. However, for debts that had defaulted for six months or more, the response rate dropped significantly. Car loans, in particular, had very low participation—especially when the default period exceeded six months, in which case banks were barely responsive.
She also pointed out that each bank’s loan portfolio differs. For example, state-owned banks typically have no car loan portfolios, so their participation rate in the…