Anticipating a decline in auction prices for bad debt sales in the coming year, Bangkok Commercial Asset Management (BAM), a prominent entity on Thailand’s Stock Exchange, has urged banks to exercise prudence in asset sales. This forecast comes amid a predicted increase in supply and a sluggish economy, both factors that are poised to influence the banking sector’s trajectory significantly.
Increasing Challenges for the Banking Sector
As the growth of distressed debts continues to surge, banks are expected to confront more challenges. The auction prices for non-performing loans (NPLs) and assets are predicted to decrease, suggesting banks should strategically sell assets this year to balance profit and bad debt write-offs. In the preceding year, banks sold bad assets worth 170 billion baht but cancelled sales of 50 billion…
