In the first quarter of this year, non-performing mortgage loans (NPLs) experienced an increase due to rising interest rates, prompting the Bank of Thailand (BoT) to encourage banks to assist borrowers through debt restructuring.
The central bank recently revealed a housing loan NPL ratio of 3.16% in the commercial banking system, up from 3.01% in the previous quarter. The primary cause for this increase is the rise in interest rates, according to Suwannee Jatsadasak, assistant governor at the BoT.
While banks typically maintain a buffer to manage increased credit risk from mortgage loans during interest rate hikes, this cushion may be insufficient for some borrowers. Consequently, the central bank mandates that banks employ pre-emptive measures to support borrowers with debt restructuring. Suwannee said…
“The central bank has extended long-term debt…
