Banks in Thailand face higher systemic risks as economic recovery remains uneven and the Russia-Ukraine conflict could drag on the nation’s tourism industry, according to S&P Global Ratings.
The long period of low activity, especially in the tourism sector, has hurt businesses and reduced household incomes in Thailand. Regulatory measures such as the loosening of loan-to-value ratio requirements for mortgages to rein in high household debt would delay a resolution of structural issues, Ratings analysts said at an online event March 23.
“We estimate that about 10% to 15% of the banking system loans will need restructuring,”
Deepali Seth-Chhabria, Ratings’ associate director for South and Southeast Asia financial institutions ratings.
The agency cut its ratings on The Siam Commercial Bank PCL and Kasikornbank PCL to BBB from BBB+, and on Krung Thai Bank PCL and TMBThanachart…
