Thailand: Banks’ bad loans down to 2.77% at end of September – c.bank

• Nov 21, 2022

Thai banks’ non-performing loans stood at 2.77% of total lending at the end of September, down from 2.88% at the end of June, helped by debt restructuring and banks’ loan management, the central bank said on Monday.

The banking system remained resilient with high levels of capital, loan-loss provisions, and liquidity, the Bank of Thailand said in a statement.

The BoT did not expect a surge in bad loans due to banks’ debt management and support measures, senior director Suwannee Jatsadasak told a news conference.

However, given the country’s uneven economic recovery, the central bank would continue to monitor debt serviceability, particularly of smaller firms and retail debtors which would be affected by higher inflation and financing costs, the BoT said in the statement.

Loans grew 5.3% in the third quarter from a year earlier, down from a 6.3% rise in the second quarter, due to debt repayment and banks’ loan management, the BoT said.

“The business sector continued to raise funding through bank loans and bonds, in line with the recovery of economic activities,” the central bank said.  

Source: https://www.bangkokpost.com/business/2442704/banks-bad-loans-down-to-2-77-at-end-of-september-c-bank