The Bank of Thailand anticipates a slower pace of loan growth in the banking industry due to reduced demand, while asserting that rising interest rates are not the main factor impacting loan expansion. The central bank’s soft loan programme, which aimed to aid small and medium-sized enterprises, largely contributed to the increased borrowing during the post-pandemic recovery period.
Sakkapop Panyanukul, Director of the Bank of Thailand’s Economic and Policy Department, said during the Monetary Policy Forum that businesses took out considerable loans to maintain liquidity amidst the economic downturn. As the country began to reopen, loans were utilised to readjust and develop firms that struggled during the pandemic.
In the first quarter of 2023, bank loan growth slowed to 0.5% year on year, Bangkok Post reported. This deceleration…
