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Fitch predicts banks to face challenging times ahead
Fitch predicts banks to face challenging times ahead
Slow recovery next couple of years
Fitch Ratings Thailand forecasts Thai commercial banks’ profitability to be restricted for the next few years, given the country’s slow pace of economic recovery from the impact of the Covid-19 pandemic.
The credit rating agency said in a statement on Wednesday Thai banks’ operating environment remains challenging because of a slow economic recovery and continued downside risks related to the pandemic. This will be particularly demanding for banks’ vulnerable clients, such as small businesses. Even so, the risk of a severely stressed macroeconomic scenario has eased compared with last year, and business activity in 2021 should show some rebound from the low base of 2020, it said.
The Thai economy was hit hard, with GDP…
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