Cantral Bank Says Thai Commercial Banks Have Become Stronger

CENTRAL BANK SAYS THAI COMMERCIAL BANKS HAVE BECOME STRONGER

Bank of Thailand Governor Mom Ratchawong Pridiyathorn Thewakul (หม่อมราชวงศ์ ปรีดียาธร เทวกุล) said Thai commercial banks have become stronger, as can be seen from the improvement in 2005 profits over the previous year.

The integrity of each bank's funds has improved, while non-performing loans had declined. The central bank chief said NPLs from the Thai Petrochemical Industries Public Company Limited still represented a problem but that overall this issue has improved.

As of end-June 2005 NPLs of TPI stood at 10%, but the figure has declined and now stands at 9%. M.R. Pridiyathorn said that NPLs are believed to be reduced to 5-6% by the end of this year, with the merging of the Asset Management Corporation and the Bangkok Commercial Asset Management Public Company Limited.

Source: Thai National News Bureau Public Relations Department - 20 January 2006