Bank of Thailand has imposed fines on leading banks Krung Thai Bank and Siam Commercial Bank for forcing mortgage clients to buy fire insurance from specific firms.

 

The central bank today (Wednesday) announced that it had fined Krung Thai Bank and Siam Commercial Bank, Bt3,540,000 and Bt3,210,000 respectively for their actions forcing clients to buy fire insurance from specific firms without giving choices to borrowers.

The two banks had implemented unfair business practices against mortgage borrowers, violating the central bank’s market conduct regulation, the BOT said.

The two banks have now corrected the services, BOT added.