Ms. Suwannee Jesadasak, Assistant Governor, Financial Institutions Supervision Group The Bank of Thailand (BOT) disclosed about the commercial banking system’s credit in the second quarter of 2023 that the commercial banking system was stable and stable. In the second quarter, commercial banking loans contracted slightly by 0.4% from the same period last year. from the gradual repayment of debts of the business sector after accelerating continuous growth to enhance liquidity during the COVID period Especially the repayment of loans for small and medium enterprises (SMEs) and the government sector, while some large businesses raise funds through the issuance of debt securities. together with the management of debt quality of commercial banks by selling off some of the credit This is considered the first negative since the last COVID period.
Non-performing loan outstanding (non-performing loan: NPL or stage 3) in the second quarter of 2023 dropped to 492,300 million baht, representing a ratio of NPL to total loans at 2.67%, while the loan ratio with a significant increase in Credit risk to total loans (significant increase in credit risk: SICR or stage 2) stood at 6.08%, a slight increase from 6.00% in the previous quarter. Debt serviceability of SMEs and certain groups of households needs to be monitored. which still has a fragile financial position due to higher debt burden and slow earnings recovery
As for the ratio of household debt to gross domestic product (GDP), the first quarter of 2023 decreased slightly in line with the economic recovery. While the business sector’s debt-to-GDP ratio continued to decline. And profitability improved slightly from the manufacturing sector. The risk from the export sector must be closely monitored in line with the global economy. The tourism sector needs to continue to recover. and the construction sector that must monitor government policies.
“Accelerating debt resolution in the next period where long-term debt resolution measures that provide special privileges during the COVID period will expire at the end of 2023, the BoT confirmed. Financial institutions continue to provide assistance to debtors. In particular, debt restructuring is consistent with the debt repayment ability of vulnerable groups. Troubled debtors are still able to continue debt restructuring. end part It is only a matter of relaxing regulatory rules to reduce costs for financial institutions.”
cr.https://www.thairath.co.th/…/perso…/banking_bond/2719314
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