The banking system remains resilient with high levels of capital buffer to withstand future risks and uncertainties, the Bank of Thailand said on Tuesday, a day after S&P Global Ratings downgraded the top lenders citing increased systemic risks.
The capital adequacy ratio of banking system stands at 20% and lenders have increased provisioning against bad loans by 430 billion baht in the past two years, the BoT said in a statement. Total provisioning at 890 billion baht is equivalent to 1.6 times of non-performing loans, it said.
“This reflects bank vigilance against the backdrop of heightened uncertainties,” the central bank said. “Currently, the financial positions of the Thai banking system remain resilient with high levels of buffer.”
S&P Global ratings lowered ratings of Siam Commercial Bank and Kasikornbank to BBB…
