Commercial lending in Thailand declined for the fourth quarter in a row, signaling growing concerns about economic momentum as tighter credit conditions and rising risk perceptions dampen borrowing among households and small enterprises. According to the Bank of Thailand, the total loan portfolio shrank by 0.9% during the April to June period, an improvement from the 1.3% drop recorded in the first three months of the year. Despite the smaller contraction, the trend underscores persistent weakness in credit demand. Non-performing loans rose slightly to 2.91% of the total, amounting to 554.9 billion baht by the end of the second quarter, up from 2.9% (548.1 billion baht) in the prior quarter. The uptick reflects ongoing challenges in debt servicing, particularly amid expectations of slower national growth.
— news from Bloomberg.com
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Thai Lending Slump for Four Straight Quarters Flags Growth Risks
Thai commercial banks saw their outstanding loans contract for a fourth consecutive quarter as lending to small businesses and consumers was crimped by heightened credit risks amid forecasts of an economic slowdown. n nOutstanding loan portfolio dwindled 0.9% in the April-June period, slower than the 1.3% contraction in the first quarter, Bank of Thailand said in a statement Tuesday. The ratio of non-performing loans marginally increased to 2.91%, or 554.9 billion baht, at the end of the second quarter, it said. That compared with 2.9%, or 548.1 billion baht in the first quarter.