December 26, 2018 / 4:36 AM / 9 months ago

Thai wary of fragility in financial system

BANGKOK, Dec 26 (Reuters) - Thailand’s central bank said on Wednesday the nation’s financial system exhibited fragility in some areas due to underlying risks in the property sector.

The central bank will monitor banks’ mortgage loan standards, rising mixed-use projects, and the impact of foreign demand, particularly from Chinese buyers, it said in a statement.

The continuing focus on yield is possibly leading to underpricing of risks, it said.

Last week, the Bank of Thailand raised the benchmark policy rate from near record lows by 25 basis points to 1.75 percent, the first tightening since 2011, to curb financial stability risks.

Reporting by Orathai Sriring Editing by Shri Navaratnam

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