There are good debts and there are bad debts. A general rule that we can apply to know if a debt is good or bad is to answer the following questions: 1. Will the use of the debt proceeds improve my condition? 2. Are the terms and conditions of the debt fair? Can I really repay the debt and fulfill its other conditions without prejudice to no. 1? In other words, will the borrower be in a better condition post debt as compared to pre-debt, even after fulfilling the loan’s terms and conditions? If the answers to the above questions are yes, then it is a good debt. An example of a good debt is a housing loan that you can afford. Your condition will be improved as you are able to buy a house for your family without putting up 100 percent of the cost, so that’s a yes for the first question. Banks normally require an equity portion of at least 20 percent of the cost. To satisfy the second set of questions, your cashflow from your … [Read more...] about Good debt vs bad debt
Loans for bad credit and no bank account
No bubble bursting yet
Is the so-called housing bubble about to burst? This, of course, is a real concern especially after the US subprime housing bubble in 2008 that caused panic and financial turmoil around the world. A record number of people were getting loans to buy real estate. Even people with bad credit qualified as subprime borrowers as banks offered easy access to home loans. Home prices started falling and borrowers stopped making mortgage payments. The Philippines experienced a similar crash in the aftermath of the 1997 Asian financial crisis which cut property values in half. But it looks like the bubble is not going to burst anytime soon, according to real estate services provider Colliers International in its first quarter 2018 report. The study notes that typically, housing bubbles are characterized by a dramatic rise in prices, driven by strong demand, speculation, and exuberance; strong demand exceeding the pace of supply completion; developers attempting to chase the demand and starting to … [Read more...] about No bubble bursting yet
Xi’s coronation makes China Central Bank choice bigger deal
Mao Zedong? Who’s he? As Xi Jinping makes modern China his own, becoming president for life, the question of who has his ear matters more than ever. Since Xi grabbed the reins in late 2012, it’s been the reform-minded Zhou Xiaochuan, the long-serving People’s Bank of China head. The retiring Zhou is a disciple of economic disputer Zhu Rongji, who as premier from 1998 to 2003 shook the state sector like rarely before. The dailyReport Must-reads from across Asia - directly to your inbox Zhu, long before that, was a protégé of Deng Xiaoping, who opened the economy in the 1970s and 1980s. Governor Zhou heading for the exit was worry enough before news broke that Xi will retain power indefinitely. The central banker has been a consistent and credible voice for opening the capital account, increasing transparency and purging the worst excesses of shadow banking institutions, local governments and state-owned enterprises. Beijing’s move to scrap the … [Read more...] about Xi’s coronation makes China Central Bank choice bigger deal
Falling global oil prices: Key economic issue for 2015
Vocabulary: account for : to be a particular amount or part of something - activity (noun): a thing that you do for work, interest or pleasure, or in order to achieve a particular aim - กิจกรรม additional : more; more than was first mentioned or is usual - ที่เพิ่มขึ้น agricultural (adj): of the science or practice of farming - ที่เกี่ยวกับเกษตรกรรม ailing : ill and weak - ป่วย anticipated : expected - คาดว่าจะเกิดขึ้น as a result of : because of - as well as : also - asset : something owned by a person, company etc., particularly money and property - ทรัพย์สิน barrel : a … [Read more...] about Falling global oil prices: Key economic issue for 2015
Bad loans: SME Bank 40%, Islamic Bank 30%
State bank restructuring will focus on loan approval standards & transparency, accounting practices & getting loans to small businesses that need them. Click button to listen to State Bank Problems download State bank woes lead to revision Ministry urges greater transparency, refocus ongoing financial problems at the Small and Medium Enterprise Development Bank of Thailand (SME Bank) and the Islamic Bank of Thailand (IBank) have prompted a rethink by the Finance Ministry of its supervisory and surveillance procedures for state-run specialised banks.transparency and a refocus on the original intent of state-run specialised banks will be the main priorities in the restructuring. rank among the weakest financial institutions in the country, with both plagued with billions of baht in distressed loans and capital-adequacy ratios well below minimum international standards.Transparency, internal controls and lending standards have been an ongoing problem at a number of … [Read more...] about Bad loans: SME Bank 40%, Islamic Bank 30%