- The Thai banking system remains resilient with robust levels of capital, loan loss provisions, and liquidity.
- The banking system’s profitability in the third quarter of 2023 improved from the previous year.
- However, there remains a need to monitor the debt serviceability of SMEs and some vulnerable households with slow income recovery.
The Thai banking system remains resilient with robust levels of capital, loan loss provisions, and liquidity. In the third quarter of 2023, the banking system’s loans slightly contracted for 0.9% YoY[1] due to the gradual repayment of business loans, following the accommodative growth in liquidity facilities during the COVID-19 period, particularly from SMEs, export-related large corporates, and the government, combined with the banks’ portfolio management. Nevertheless, banks’ lending continued to expand in some sectors, mainly in holding…
