Bangkok, May 22 – The Bank of Thailand indicates that in the first quarter of 2023, the commercial banking system is stable. can continue to support the economic recovery But still need to monitor the debt serviceability of fragile households with low incomes, slow recovery and high debt groups.
Ms. Suwannee Jesadasak Assistant Governor Financial Institution Supervisory Division Bank of Thailand The Financial Institutions Supervision Division discussed the overview of commercial banks in the first quarter of 2023 that the commercial banking system was stable. can continue to support the economic recovery
Credit to the commercial banking system grew by 0.5 percent, decelerating from the same quarter last year. from the repayment of government debt large business and soft loans, including debt quality management Some large corporations raise funds through debt instruments. However, credit can still be expanded by large corporations in the financial and commercial sectors. including retail portfolios, residential portfolios and personal loans are important
For the first quarter of 2023, the performance improved from the same period last year. This was a result of higher net interest income following loan growth and an upward trend in interest rates. This was offset by an increase in funding costs from the increase in deposit interest rates and FIDF fees returning to normal levels. together with FVTPL’s gains from derivatives Although operating expenses and reserve expenses increased, if compared to the previous quarter. Net profit decreased 4.0% due to higher finance costs. In addition, the previous quarter had extra income from the sale and transfer of retail credit portfolios. Although reserve and operating expenses are reduced.
However, the ability to repay debt still needs to be monitored. of vulnerable households with low incomes Slow growth and high debt and recovery of some businesses The ratio of household debt to GDP remained stable from the previous quarter. while the business sector The ratio of corporate debt to GDP continued to decline. Profitability decreased. But the overall financial position is still good. The impact of slowing global demand must be monitored. and some businesses that are sensitive to rising costs.
credit quality Commercial banks manage debt quality and continuously assist debtors through debt restructuring. As a result, the outstanding balance of non-performing loans Non-Performing Loan (NPL or stage 3) as of Q1/2023 dropped to THB 498.0 billion, representing NPL to total loan at 2.68%.
Ms. Suwannee said The Bank of Thailand continues to monitor non-performing loans of various commercial banks. continued that Which group are you in? However, in the past, financial institutions have continued to provide assistance to debtors in accordance with debt relief measures. In particular, debt restructuring in line with debt repayment ability, which is good for both the debtor to be able to repay debt and is good for the operation of commercial banks.-Thai News Agency
Source: Thai News Agency