Banks still strong, bad debt rate stable in second quarter

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The banking system in the second quarter remained strong with high levels of capital funding and loan loss provisions to manage the impact of the Covid-19 pandemic, while bad debts were flat, the Bank said on Monday. of Thailand (BoT).

The country’s largest coronavirus outbreak to date has hit economic activity, with tighter containment measures extended and areas expanded.

In the June quarter, the capital funding of the banking sector equals a capital adequacy ratio (BIS ratio) of 20%, with a non-performing loan coverage (NPL) ratio of 152.2%, The Bank of Thailand said in a statement https: //www.bot.or.th/English/PressandSpeeches/Press/2021/Pages/n6364.aspx.

NPLs stood at 3.09% of total loans in June, little change from 3.10% in March, aided by financial support measures and a relaxed loan classification, he said. indicated.

“With the assistance measures, we do not believe that the NPLs will increase, but rather gradually as the loans deteriorate in accordance with a long and difficult situation,” said Suwannee Jatsadasake, senior director of BoT, at the meeting. ‘a briefing.

Last week, the central bank approved additional financial measures to help debtors affected by the epidemic, including providing liquidity and easing lending rules.

In the June quarter, overall bank lending growth slowed to 3.7% year-on-year from 3.8% in the previous quarter as some companies opted for bond issues from bank loans, the report said. BoT.

However, loans to small and medium-sized businesses edged up in the second quarter for a five-year period, Ms. Suwannee said.


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