Banking system strong enough to cope with future risks

The country’s banking system remains strong enough to handle risks from high uncertainty in future, the Bank of Thailand (BoT) said on Tuesday, responding to S&P’s ratings downgrades on some Thai banks on rising systemic risk.

The economy is expected to gradually recover, which will help improve debtors’ income and debt servicing ability and improving banks’ credit quality, BoT deputy governor Ronadol Numnonda said in a statement.

S&P downgraded Kasikornbank, Krungthai Bank , Siam Commercial Bank and TMB Thanachart Bank on rising systemic risk and persistently high leverage among borrowers, International Financing Review (IFR) reported on Tuesday.