TISCO Group gives importance to responsible business practices and cooperates with the financial industry to ensure business operations are developed in line with the sustainable banking concept. As such, TISCO Group has signed a memorandum of cooperation, “Sustainable Banking Guidelines - Responsible Lending”, with consideration to the environment, society, and governance as part of operations.
To help drive sustainable practices in the Thai Financial Sector and address problems in Thai society such as high levels of household debt and corruption, TISCO Group adheres to banking sustainability guidelines for retail and corporate loans.
TISCO Group recognizes its role as a provider of responsible financial services and supports the Responsible Lending Directive (RLD) by providing financial knowledge to communities. When lending, we take into consideration customer benefits and fairness so as to encourage migration of loans from the informal sector to the formal sector.
In addition, TISCO Group has drawn up guidelines to reduce household debt that underline the importance of verifying customer profiles in loan approval, (Know Your Customer: KYC, and Customer Due Diligence: CDD) as well as understanding customer attributes and their spending wishes. The practice guidelines allow us to assess whether customers’ repayment ability is appropriate for their income level, considering debt burden and regular expenses. However, to ensure that our operations follow clear policies and practices proven to be consistent with industrial standards, we have developed the following operational plans:
Offer responsible financial products and services
Which ensure loan approval is consistent with retail customer’s repayment ability.
Mitigate of Potential Risks
That may occur both for TISCO Group and customers by not encouraging customers to borrow beyond their needs.
Provide accurate and complete information
Under the loan approval terms and conditions process that is based on market conduct.
Social and environmental impact issues are also incorporated in our loan approval process for projects and investments of large business groups in order to minimize negative effects on the economy, society, and the environment. Monitoring after loan approval is introduced ensures that funds are being spent as required under the approved objectives. Furthermore, auditing of compliance with loan approval conditions and examination of the project’s operations are followed with an Environmental Impact Assessment (EIA), including a credit review and monitoring of the borrower’s debt payment ability.
We continue to support the green energy business and in 2019 strengthened our ability to implement sustainable banking. In this regard, TISCO Group has reviewed and updated the Responsible Lending Policy and project loan approval processes to incorporate environmental, social and governance (ESG) risk factors into the approval criteria at the client and transaction levels as well as at the lending portfolio level. In addition, we have produced an exclusion list of businesses, as well as corporate governance based on guidelines and client support to operate a business that minimizes environmental and social impact.