Thai banks strong, can weather economic uncertainty

BANGKOK (Reuters) – Thailand’s banking system remained resilient with high capital buffers and liquidity to cushion economic uncertainty, the central bank said on Monday, as the country deals with a third wave of coronavirus infections.

The outbreak, Thailand’s biggest so far, has hit consumption and tourism, prompting a growth outlook downgrade by the state planning agency on Monday.

In the first quarter, overall loans expanded 3.8% from a year earlier, slowing from a 5.1% rise in the previous quarter, as large corporate loan growth moderated following an acceleration in loan usage last year, Suwannee Jatsadasake, a senior director at the Bank of Thailand (BOT), told a briefing.

Corporate loans grew 3% in the March quarter from a year earlier while consumer loans increased at a faster pace of 5.3%.

Loan quality remained stable, helped by credit assistance and revised rules on loan…