Banking Sector Faces a Huge Selloff after BOT’s Measures to Post Negative View on Sector!

Banking Sector Faces a Huge Selloff after BOT’s Measures to Post Negative View on Sector!

The share price of the banking sector in SET Index faced a huge selloff in the morning session on Monday, June 22, 2020, after the Bank of Thailand introduced more measures in hopes of supporting Thais from the effect of the coronavirus outbreak.

 

Last Friday, the Bank of Thailand (BOT) issued an order to halt Thai commercial banks in paying an interim dividend for the 2H operations, and banned a share repurchase program to maintain its funds financial level. Moreover, BOT also ordered a reduction of credit card interest rate to 16% and a reduction in collecting interest of cars for cash to 24%.