Ms. Suwannee Jesadasak Assistant Governor Financial Institutions Supervision Division 1, Bank of Thailand (BOT) revealed an overview of the commercial banking system in 2022 that commercial banking system credit in 2022 grew by 2.1%, decelerating from the previous year. from debt repayment of large corporate, public sector and soft loan, as well as the transfer of retail portfolio to a subsidiary of a commercial bank and debt quality management. and retail, residential and personal portfolios are important
credit quality Commercial banks continuously assist debtors through debt restructuring. and manage debt quality As a result, the outstanding non-performing loan (NPL or stage 3) at the end of 2022 dropped to 499.2 billion baht, representing a NPL to total loan ratio of 2.73%.
“The commercial banking system is stable. and stable It has a high level of capital, reserves and liquidity. Able to continue to support the economic recovery, “said Ms. Suwannee.
Ms. Suwannee also mentioned that commercial banks’ performance in 2022 improved from the previous year. mainly as a result of credit expansion and interest rate direction causing net interest income to increase together with a decrease in reserve expenses after commercial banks gradually set aside high levels of reserves throughout the COVID-19 period
However, the debt serviceability of households still needs to be monitored. and recovery of some businesses by household Although the ratio of household debt to GDP will decrease in line with the economic recovery. But households are still fragile from high debt burden. and still need to monitor the credit quality of vulnerable debtors who have not yet recovered from the impact of COVID-19. And may be affected by the cost of living and interest that gradually increases.
while the business sector The ratio of corporate debt to GDP declined from the previous quarter. And the overall profitability is still good in line with the economic recovery. but still need to monitor the financial status of the business sector which may be affected by higher costs
“In the past Financial institutions continue to provide assistance to debtors. Especially the debt restructuring in line with the debt repayment ability of the fragile group, “said Ms. Suwannee.
