Thanachart puts off its credit-card launch plans

       Thanachart Bank has postponed the launch of credit card business following the Bank of Thailand's advice to wait out the rough economy.
       The central bank advised the bank to reconsider the economic environment and credit-card market conditions before introducing a credit card product, even though the central bank approved the bank's proposal in the first quarter of this year.
       The recession has led to higher nonperforming loans for the country's credit card issuers. The central bank reported credit card NPLs of 3.1% of total outstanding credit in the first quarter of this year, an increase from 2.9% in the previous quarter.
       This is the second postponement by TBank as it originally planned to offer the service in April after receiving central bank approval in March. The bank does offer a credit card to existing clients and its staff.
       TBank has not finalised when it will launch a general public credit card, but claims market segmentation is a key factor motivating it to enter this sector.
       "It's not easy for a new player in the market during a sluggish economy and given the industry's tough competition.But the bank is ready to enter this business when the time is right," said executive vice-president Nophadon Ruengchinda.
       Scotiabank, the bank's major shareholder, fully supports the introduction of credit cards to generate higher income.TBank wants to offer a full range of financial services under a universal banking policy.
       In addition, the bank wanted to expand its deposit base to 330 billion baht this year from total outstanding deposits of 310 billion in 2008. The bank has raised deposits to around 312 to 315 billion baht for the first seven months of the year, despite falling liquidity affected by the government's savings bond issue.The bank has around one million customer accounts including deposit and automobile loan clients.