Thai central bank says financial system stable but debt poses risks

BANGKOK :Thailand’s overall financial system is stable and the economy is gradually recovering, but rising household debt and an uneven recovery pose risks, the central bank said on Friday.

Household debt continued to rise, while the Omicron variant of the coronavirus casts doubt over the recovery, Bank of Thailand senior director Don Nakornthab said.

The economic recovery remained uneven, especially in tourism-related sectors, Don said.

However, commercial banks and financial institutions were strong enough to cope with uncertainty with adequate liquidity to support credit and the recovery, the BOT said in a statement.

Going forward, accelerating debt restructuring, improving household debt and support for access to business capital will be crucial to ensure financial stability.

(Reporting by Chayut Setboonsarng; Editing by Kim Coghill and Sam Holmes)