The Government Housing Bank (GHB), a government-owned financial institution that primarily provides mortgage financing, has announced its plan to streamline its operations in order to improve access to its mortgage-provision services for low-income households. Specifically, GHB intends to cut costs, expand small branches to provincial locations and cooperate with private banking partners to reach its new loan target market. GHB President Worawit Chailimpamontri reportedly foresees that the implementation of this new strategy will help to maintain GHB’s market share in the mortgage industry in the face of increasing competition from commercial banks. A recent survey showed that the new target market represents 2.3 million households who have the capability of purchasing their own homes.
By Jacqueline Foelster, Research Associate
About Government Housing Bank (GHB): Established in 1953 by the Government Housing Act as a government-owned bank under Thailand’s Ministry of Finance, GHB’s primary objective is to provide residential financing for low- and middle-income borrowers. One of GHB’s main functions is to mobilize funds which it then on-lends as mortgages to homebuyers. In addition to lending housing funds, GHB provides financial support to the National Housing Authority and private housing developers in the form of wholesale financing and guarantees. In 2009, GHB reported total assets of THB 692 billion (USD 22.6 billion), a loan portfolio of THB 500 billion (USD 16.3 billion) and 170,000 borrowers.
Sources and resources
[1] Bangkok Post, February 28, 2011, “GH Bank going micro”, http://www.bangkokpost.com/business/economics/223811/gh-bank-going-micro
[2] MicroCapital.org Article, March 1, 2011, “Thailand’s Ministry of Finance Launches Community Banking Program Based on Microfinance Model of Grameen Bank, Bank for Agriculture and Agricultural Cooperatives (BAAC) Sets Aside $321m for Lending, Staff Training”, https://www.microcapital.org/microcapital-brief-thailand%E2%80%99s-ministry-of-finance-launches-community-banking-program-based-on-microfinance-model-of-grameen-bank-bank-for-agriculture-and-agricultural-cooperatives-baac-set/
MicroCapital Microfinance Universe Profile: Government Housing Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Government+Housing+Bank
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