Banks may see strong loan growth, more bad loans this year: BoT
published : 18 May 2020 at 16:46
Commercial banks are expected to post strong loan growth this year, as more large businesses are seeking credit due to the volatile debt market amid the coronavirus outbreak, a senior director at the Bank of Thailand (BoT) said on Monday.
Loans grew 4.1% in the first quarter of this year, compared with 2% in the whole of 2019, Director Tharith Panpiemraas told a briefing. But he did not give a specific forecast.
Non-performing loans (NPLs) are likely to rise further this year, reflecting the slowing economy, he said.
NPLs stood at 3.05% of total lending at the end of March, up from 2.98% at the end of last year, Mr Tharith said.
The Thai economy contracted 1.8% in the first quarter from a year earlier, and 2.2% from the December quarter, as social restrictions to limit the spread of the coronavirus hit tourism and domestic activity.