Thai Banks Prepare for Growing Loan Risks Amid Global Uncertainties

[snoop1130]

 

Big local banks in Thailand are expecting increased difficulties for their corporate clients in the latter part of the year due to global uncertainties and fears of a potential US recession. The banks are planning to handle asset quality to offset the growing loan risks among specific customer groups.

 

Siam Commercial Bank's (SCB) CEO, Kris Chantanotoke, pointed out that some business clients could face increasing operational problems later this year due to internal and external risk factors. There is a reduced demand in several industries within the country, paralleling slower economic growth. In the international context, several sectors are likely to be affected by economic uncertainties, geopolitical risks, and fears of a possible US recession.

 

According to Kris, credit risk for some business clients is likely to rise. SCB plans to adapt a more cautious approach towards loan growth to safeguard asset quality. Even though there are challenges, Kris noted the SCB's business client base remains strong and ready to handle these uncertainties.

 

Despite stagnant growth in some sectors, SCB predicts a rise in business loans this year. SCB, the fourth-largest lender in Thailand by total assets, has set a modest loan growth aim for 2024 and marked minor growth in the first half of this year.

 

The President of Bangkok Bank (BBL), Chartsiri Sophonpanich, stated that the bank plans to support its clients amidst rising uncertainties in both domestic and global economies. BBL aims to increase its provisions for expected credit losses in the latter part of the year while effectively managing costs and adjusting interest rates for customers.

 

The Chief Executive of Kasikornbank (KBank), Kattiya Indaravijaya, stated that the bank will cautiously grow its corporate loan portfolio in the latter half of the year due to heightened global and national uncertainties.

 

As of June, the six significantly important domestic banks showed a combined loan portfolio of 13.49 trillion baht, a modest decrease from 13.51 trillion in December last year. These banks project total loan growth in the range of 3-5% for 2024.

 

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-- 2024-08-12

 

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[Pouatchee]

great... bring in the casinos and it wont just be loan risks... but more like bankruptcies.

 

the illegal lenders are going to make a killing