Thai Banks Explore Joint Venture Asset Management Companies to Tackle Rising Debt
BANGKOK, Thailand - Several of ThailandS largest commercial banks are actively discussing the formation of joint venture asset management companies (JVAMCs) to address a growing volume of non-performing loans (NPLs) and free up capital for new lending, according to reports from Prachachat Turakij. The move comes as concerns rise over household debt, with some individuals owing as little as 100,000 baht facing significant financial strain.
The initiative aims to improve the management of bad debt, perhaps unlocking liquidity within the banking sector. Asset Management Company Bangkok Commercial Public Company Limited (BAM), led by CEO Dr. Rak Worakijpokathorn, is currently in negotiations with three major commercial banks and anticipates reaching a decision by November.
Siam Commercial Bank (SCB), under CEO Krit Chanthanothok, has expressed strong interest in establishing a JVAMC. While acknowledging the need for system testing, SCB anticipates a pilot program could launch by early 2026. “The establishment of JVAMC is necessary in the current situation. As if bad debt is managed well Banks will have space and liquidity to continue lending,” Chanthanothok stated.
Krung thai Bank President Phayong Sriwanich, also speaking as President of the Thai Bankers Association (TBA), echoed this sentiment, predicting the emergence of JVAMCs by the beginning of 2026. He noted that multiple JVAMCs may be established incrementally, rather than simultaneously, and views them as a valuable tool for debt resolution.
However, not all banks are participating. Thanachart Thai Military Bank (TTB), represented by General Manager Thakorn Piyaphan, has indicated it does not plan to establish a JVAMC, citing it’s relatively small portfolio and the existing capabilities of its subsidiary, Phaholyothin Asset Management Company Limited (PAMCO).
JMT Network Services Public Company Limited (JMT), led by CEO Suthirak Trichira Aporn, is cautiously evaluating the proposal.Aporn emphasized the need to carefully assess the potential returns and business model of a JVAMC, stating, “We view JVAMC like new wine in the same bottle. You must look at the conditions, value and returns first.” He suggested that direct debt purchases might potentially be more profitable, and called for incentives to encourage JVAMC formation, such as soft loan limits and clear regulatory guidelines.
