Article: Thai Legislators Likely to Defeat Bid to Limit Lending, Deposit Rate Spreads.

Apr. 11--The government is expected to use its majority in the Lower House to defeat proposed amendments to the Financial Institutions Act, including a limit on spreads between lending and deposit rates.

Government MPs, bank regulators and analysts agree that the proposed limit is certain to be defeated because it would damage the financial system and the economy.

On Tuesday, a joint parliamentary committee voted 10-5 with two abstentions in favour of a cap on interest-rate spreads.

Bank regulators and financial institutions have sharply opposed the proposed limit as hindering flexibility within the financial system and potentially resulting in ...

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