Credit card NPLs for the third quarter the highest in 11 years

 

 

BANGKOK: -- Credits expanded only 2.4 percent in the third quarter of the year which was the lowest in six years while non-performing loans of the same period increased 2.89 percent, representing the highest in five years since the second quarter of 2011, said Mr Don Nakhontap, senior director of the Bank of Thailand on Thursday.

 

He pointed out that the 2.4 percent credit expansion was lower than growth rate and out of the total of 11.78 trillion of credits, 2.89 percent of them were NPLs and out of the total NPLs, 5.10 percent were NPLs incurred by credit card spendings – an increase from 4.25 percent – which was the highest in 11 years since 2005.

 

Mr Don predicted that NPLs this year had not peaked and was likely to peak in the first or second quarter of next year as commercial banks would have come up with better NPL management with debt restructuring or debt harcuts in the fourth quarter.

 

Full story: http://englishnews.thaipbs.or.th/credit-card-npls-for-the-third-quarter-the-highest-in-11-years/

 

-- © Copyright Thai PBS 2016-11-11

"However, he assured that the increase of NPLs was not much of a matter of concern as commercial banks had set aside about 513.2 billion baht as reserves"

 

Yeah...you know, i'd still be concerned if I were you.

 

You being the senior director of the bank of Thailand and all.....

It's coming. But they just can't see it can they ? 

32 minutes ago, RichardColeman said:

It's coming. But they just can't see it can they ? 

 

In order to read "the writing on the wall" they would:

 

1.  Have to know that the wall existed and where it was.

2.  Have to look at the writing.

3.  Need the ability to understand the language in which it was written.

4.  Accept that, even though it was not written by a Thai, it has validity.

 

 

 

 

Edited November 11, 20169 yr by Enoon

8 hours ago, webfact said:

Mr Don predicted that NPLs this year had not peaked and was likely to peak in the first or second quarter of next year as commercial banks would have come up with better NPL management with debt restructuring or debt harcuts in the fourth quarter.

Would be nice to see some banks take a harcut? must mean haircut. They need to tighten their loan requirements that is obvious. Seems like every Tom Dick Somkid and farmer are driving a brand new 4 door pickup truck (2 door is so blase!!) When I sit outside my favorite store sipping a beer and watching the world zip by it seems to be full of these 4 door elephants with the odd eco car. My what wonderous times we live in. 

2 hours ago, RichardColeman said:

It's coming. But they just can't see it can they ? 

 

Kinda like the West in 2008?

The article doesn't tell us very much. In order to understand economic trends we need points of comparison. These could be comparisons of figures over a number of years, comparisons with analysts' expectations, comparisons with other countries or other eras, comparisons between Thai banks or analytical comment from a correspondent or industry expert.

 

The article lacks all of the above and looks as if it has been cobbled together with no thought to the reader, no desire to inform, simply an effort to produce an article (read : some words) to fill a hole on the webpage.

As we used to say in banking, it's not an if, it's a when.

6 hours ago, YeahSiam said:

 

Kinda like the West in 2008?

I was on the marketing side of business banking in the US, which was very different, un-nasty animal from either commercial or wealth management in the 2000's. I sold my home in 2006 because well, it had appreciated to a simply absurd level which I knew was not sustainable. Everyone, including my financial services peers, told me what a fool I was. I moved the bulk of my stock investments, with the exception of gold ETFs, to a cash position mid 2007. I retired at age 55 in 2008.

The other shoe will drop here.