Popular Post webfact Posted March 23, 2022 Popular Post Share Posted March 23, 2022 The Bank of Thailand (BoT) says that the Thai banking system has undergone regular stress tests and remains resilient, with a high level of capital buffers to help it to withstand risks and uncertainties, despite S&P Global Ratings’ downgrading of four of Thailand’s commercial banks. S&P downgraded ratings of Siam Commercial Bank and Kasikorn Bank, from BBB+ to BBB, and Krungthai Bank and TMB Thanachart Bank, from BBB to BBB-. Keep up to date with all things Thailand - Join our daily ASEAN NOW Thailand Newsletter - Click to subscribe The ratings agency said systemic risk for Thai banks has risen and high leverage among borrowers, amid rising household debt, is likely to persist longer than expected. Its base case scenario also projects the bad loans, held by Thai banks, will grow to 5% over the next 24 months, from the current 3%, which would be the highest since the global financial crisis of 2008. Full story: https://www.thaipbsworld.com/central-bank-assures-thai-banking-system-remains-resilient-despite-sp-downgrade/ -- © Copyright Thai PBS 2022-03-23 - Aetna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here. - Follow ASEAN NOW on LINE for breaking COVID-19 updates 2 3 Link to comment Share on other sites More sharing options...
Popular Post Will B Good Posted March 23, 2022 Popular Post Share Posted March 23, 2022 (edited) Sounds a bit like the board of directors at a football club giving their wholehearted support to the coach after his fifth straight loss in a row........we all know what happens just after that. Edited March 23, 2022 by Will B Good 9 1 Link to comment Share on other sites More sharing options...
RubbaJohnny Posted March 23, 2022 Share Posted March 23, 2022 A real trade expert Mandy Rice Davis said "They would say that wouldn't they". International traffic controller Sydney Powderman will be along soon to help the Hi-so's and So-Hi's 1 Link to comment Share on other sites More sharing options...
HappyExpat57 Posted March 23, 2022 Share Posted March 23, 2022 You can lie to the world but the world isn't buying your bs. 1 Link to comment Share on other sites More sharing options...
timendres Posted March 23, 2022 Share Posted March 23, 2022 S&P has never helped anyone avoid a bank failure. 1 Link to comment Share on other sites More sharing options...
Popular Post RichardColeman Posted March 24, 2022 Popular Post Share Posted March 24, 2022 17 hours ago, webfact said: Its base case scenario also projects the bad loans, held by Thai banks, will grow to 5% over the next 24 months, from the current 3%, which would be the highest since the global financial crisis of 2008. I'd say it was way higher than that now. Makes me laugh seeing a dirt poor Thai in a second hand pair of shorts and repairs flip flops getting out of a new pick up to buy noodles. 4 2 Link to comment Share on other sites More sharing options...
IgboChief Posted March 24, 2022 Share Posted March 24, 2022 The Bank's have liabilities in THB and FX/USD. The Central Bank will always be able to bail them out in THB, but what about the FX? How long will the Central Bank be able to act as Lendor of the Last Resort for the FX Liabilities, when a) USD yields go up (to curb inflation) and b) FX Funding Cost for the Thai Commercial Banks go up from the downgrades? We can't ignore that FX inflows are heavily affected from the lack of tourists (30 Mill. tourists, each spend average 1000 USD -- gives 30 bn. USD inflow every year). Together weak car exports due to high cost of diesel (who would by Hillux trucks!), FX inflow could become a problem. 1 Link to comment Share on other sites More sharing options...
hotchilli Posted March 24, 2022 Share Posted March 24, 2022 19 minutes ago, RichardColeman said: I'd say it was way higher than that now. Makes me laugh seeing a dirt poor Thai in a second hand pair of shorts and repairs flip flops getting out of a new pick up to buy noodles. I know 3 teachers all under the age of 30 who have bought new cars this year... I thought teachers were in financial trouble? 2 Link to comment Share on other sites More sharing options...
Excel Posted March 24, 2022 Share Posted March 24, 2022 Of those 4 banks quoted three of them are the only ones where you can transfer more than 50.000 in one international transaction. Perhaps the "arrangement" they have with obviously the Thai government/BOT is not to the liking of S & P or else they know something we don't to downgrade them. 1 Link to comment Share on other sites More sharing options...
thaiowl Posted March 24, 2022 Share Posted March 24, 2022 This is the same Bank of Thailand which was overseeing the Thai commercial banks before the Asian Financial Crisis in 1997 and which wasted Thailand's foreign exchange reserves trying to retain the peg to the USD. 1 1 Link to comment Share on other sites More sharing options...
HappyExpat57 Posted March 24, 2022 Share Posted March 24, 2022 2 hours ago, hotchilli said: I know 3 teachers all under the age of 30 who have bought new cars this year... I thought teachers were in financial trouble? Thai or foreign teachers? Link to comment Share on other sites More sharing options...
Enzian Posted March 24, 2022 Share Posted March 24, 2022 My bank Krungsri is not on the list so OK. My gf jokes that she and her sister can be happy because they never have enough money in any bank to be able to worry. 1 Link to comment Share on other sites More sharing options...
Excel Posted March 24, 2022 Share Posted March 24, 2022 2 hours ago, hotchilli said: I know 3 teachers all under the age of 30 who have bought new cars this year... I thought teachers were in financial trouble? Perhaps those teachers don't teach basic economics and financial planning ???? 1 1 Link to comment Share on other sites More sharing options...
Cake Monster Posted March 24, 2022 Share Posted March 24, 2022 3 hours ago, RichardColeman said: I'd say it was way higher than that now. Makes me laugh seeing a dirt poor Thai in a second hand pair of shorts and repairs flip flops getting out of a new pick up to buy noodles. A couple of Years or so ago, ' Bloomberg " described Thais as " A Nation of people that drive BMW Cars, but live in Tin Sheds " Never has that been more true than it is at the present time. Household Debt has risen by a whopping 14 % of GDP over the last 2 Quarters of 2021. From 86 % of GDP to 100 % Downgrades are long overdue, as this amount of lending and borrowing is not sustainable, and with the Economy starting to show signs of slowing, a rash of NPL are due to become very real IMO.. 2 Link to comment Share on other sites More sharing options...
Popular Post Isaan sailor Posted March 24, 2022 Popular Post Share Posted March 24, 2022 Last year, banks lowered insurance guaranties to one million Baht per individual, per institution. This doesn’t give one a sense of confidence in the system. 6 1 Link to comment Share on other sites More sharing options...
wasabi Posted March 24, 2022 Share Posted March 24, 2022 Just drop USD/THB back to 45.00 and we can call it a day. 1 Link to comment Share on other sites More sharing options...
Grusa Posted March 24, 2022 Share Posted March 24, 2022 16 hours ago, timendres said: S&P has never helped anyone avoid a bank failure. I never realised quite how influential that bakery chain could be. Almost as powerful as Macdonalds! 1 Link to comment Share on other sites More sharing options...
Popular Post John Drake Posted March 24, 2022 Popular Post Share Posted March 24, 2022 4 hours ago, hotchilli said: I know 3 teachers all under the age of 30 who have bought new cars this year... I thought teachers were in financial trouble? Well, they are now. 4 2 Link to comment Share on other sites More sharing options...
John Drake Posted March 24, 2022 Share Posted March 24, 2022 Quote Its base case scenario also projects the bad loans, held by Thai banks, will grow to 5% over the next 24 months, from the current 3%, which would be the highest since the global financial crisis of 2008. And my wife's family will be responsible for at least 8 or 9 of them. 2 Link to comment Share on other sites More sharing options...
Popular Post NoshowJones Posted March 24, 2022 Popular Post Share Posted March 24, 2022 3 hours ago, Isaan sailor said: Last year, banks lowered insurance guaranties to one million Baht per individual, per institution. This doesn’t give one a sense of confidence in the system. I keep the bulk of my money in my UK bank, only keep enough in Thailand for my living expenses. So anyone wanting a large some of money from me are on to plums. I would not trust any Thai bank with my money while the country is run by a bunch of poorly educated tinpot soldiers. 4 1 Link to comment Share on other sites More sharing options...
worgeordie Posted March 24, 2022 Share Posted March 24, 2022 So it's down to whom do you trust / believe , S & P , or The Bank of Thailand , what was the BoT saying before the bubble burst in 97 ,same thing as today ,I bet . regards Worgeordie 1 1 Link to comment Share on other sites More sharing options...
Isaan sailor Posted March 24, 2022 Share Posted March 24, 2022 32 minutes ago, possum1931 said: I keep the bulk of my money in my UK bank, only keep enough in Thailand for my living expenses. So anyone wanting a large some of money from me are on to plums. I would not trust any Thai bank with my money while the country is run by a bunch of poorly educated tinpot soldiers. The lowered insured cash amounts can help in unforeseen ways. When family members ask for loans or handouts, my wife explains to them I must keep Baht in bank at all times now for my visa requirement. 1 Link to comment Share on other sites More sharing options...
Popular Post AnotherFarang8 Posted March 24, 2022 Popular Post Share Posted March 24, 2022 Relevance of western ratings (S&P, Fitch) and USD as the world reserve currency is under serious threat as Russia has announced selling natural gas to the list of unfriendly countries for rubles, Saudi Arabia planning to sell oil for Chinese Yuan. This is a multi-currency system in the making, effectively a collapse of the Bretton Woods system of USD trade hegemony. US and Europe have effectively defaulted on their obligations freezing Russian currency reserves, making USD and Euro unreliable currencies to hold. Watch the great bank run as other countries begin to diversify their reserves. 2 1 2 Link to comment Share on other sites More sharing options...
sawadee1947 Posted March 24, 2022 Share Posted March 24, 2022 7 hours ago, hotchilli said: I know 3 teachers all under the age of 30 who have bought new cars this year... I thought teachers were in financial trouble? Check next year. Probably the Banks are the new owners of the cars and the teachers you would find riding their push bikes.???? 1 1 Link to comment Share on other sites More sharing options...
jollyhangmon Posted March 24, 2022 Share Posted March 24, 2022 58 minutes ago, AnotherFarang8 said: Relevance of western ratings (S&P, Fitch) and USD as the world reserve currency is under serious threat as Russia has announced selling natural gas to the list of unfriendly countries for rubles, Saudi Arabia planning to sell oil for Chinese Yuan. This is a multi-currency system in the making, effectively a collapse of the Bretton Woods system of USD trade hegemony. US and Europe have effectively defaulted on their obligations freezing Russian currency reserves, making USD and Euro unreliable currencies to hold. Watch the great bank run as other countries begin to diversify their reserves. ... dream on tovaritzky, nobody will buy your khrap for rubblish ... e.m.b.a.r.g.o. in 3 - 2 - 1 // 1 Link to comment Share on other sites More sharing options...
RubbaJohnny Posted March 24, 2022 Share Posted March 24, 2022 7 hours ago, thaiowl said: This is the same Bank of Thailand which was overseeing the Thai commercial banks before the Asian Financial Crisis in 1997 and which wasted Thailand's foreign exchange reserves trying to retain the peg to the USD. Old saying, use lots of lube if trying to insert a round peg in a square 'ole Link to comment Share on other sites More sharing options...
peter zwart Posted March 24, 2022 Share Posted March 24, 2022 That doesn't surprise me. I live in the countryside and really everyone here has loans up to their ears which they can absolutely never pay back. If this is a benchmark for large parts of Thailand then you can wait for problems to arise. However, for tourism it would be a good thing. Link to comment Share on other sites More sharing options...
AnotherFarang8 Posted March 24, 2022 Share Posted March 24, 2022 27 minutes ago, jollyhangmon said: ... dream on tovaritzky, nobody will buy your khrap for rubblish ... e.m.b.a.r.g.o. in 3 - 2 - 1 // Lol. Embargo would push lifestyles in the west 100 years backwards. For those who will survive a die-off from famine, diseases, roaming marauders, because many will not make it through. April is going to be interesting as European populations, hit by economic sanctions against Russia that backfired, will take their discontent to the streets en masse. 1 Link to comment Share on other sites More sharing options...
peter zwart Posted March 24, 2022 Share Posted March 24, 2022 1 hour ago, sawadee1947 said: Check next year. Probably the Banks are the new owners of the cars and the teachers you would find riding their push bikes.???? So next year i can buy a nice and cheap occasion? Link to comment Share on other sites More sharing options...
jollyhangmon Posted March 24, 2022 Share Posted March 24, 2022 53 minutes ago, AnotherFarang8 said: Lol. Embargo would push lifestyles in the west 100 years backwards. For those who will survive a die-off from famine, diseases, roaming marauders, because many will not make it through. April is going to be interesting as European populations, hit by economic sanctions against Russia that backfired, will take their discontent to the streets en masse. ... yaaawn, just more ridiculous blabbering as expected, wishful thinking (?) at best ... Now, stroll on pukins b-boy, just don't draw conclusions from your ilks known disgusting behaviour, watch & learn, 555 ... 1 Link to comment Share on other sites More sharing options...
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