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Credit cards are a substitute for the traditional payment format when a trade occurs. Likewise, they create loans without any personal guarantees. When the economy is unstable, this form of credit is likely to increase the NPLrate and create other business instabilitiesEvery corner of the business sector has been affected by the global economic downturn. Credit cards, directly involved with spending and loans, are especially vulnerable to the lower growth rate and higher risk of non-performing loans (NPL). +At the first anniversary party of Elite on August 26, Shoke Na Ranong, senior vice-president of the credit card division of Bangkok Bank PCL (BBL), gave an exclusive speech to guests regarding the company’s strategies for navigating the current situation.What is the current state of the credit card business?The credit card business basically combines two financial factors: payments and loans. Credit cards are a substitute for the traditional payment format when a trade occurs. Likewise, they create loans without any personal guarantees. When the economy is unstable, this form of credit is likely to increase the NPL rate and create other business instabilities. A well organised bank, therefore, needs to take this into account. We have to know how to manage debt in order to decrease the NPL rate. Credit card applicants will find stricter criteria.A credit card business requires an effective debt collection department. Thailand’s newly launched Debt Collection Act hinders bankers’ procedures when debtors default. We have to be much more considerate because the regulations from the new act restrict specific types of debt collection, such as particular times to call debtors. Fortunately, even though the credit assessment conducted by the Bank of Thailand reveals a decreasing rate of credit overall, the spending growth rate of BBL card holders is still accelerating while our bad debt rate is less than overall. It proves that BBL customers are high quality and there are opportunities for our business to expand.Elite+ 33