According to the Bank of Thailand, the ratio of non-performing loans (NPLs) in Thai banks increased slightly from 2.66% in December to 2.74% in March. Despite this uptick, the central bank reassured that the level of bad loans remains manageable, attributing the strength of banks to their high capital levels.
The Bank of Thailand also anticipates a decrease in the household debt to GDP ratio in Q1 due to a more positive-than-expected GDP growth outlook.
Meanwhile, former finance minister Thirachai Phuvanatnaranubala expressed optimism regarding the new finance minister, Pichai Chunhavajira’s understanding of the central bank’s culture. He highlighted the potential for improved collaboration between the two agencies and suggested that Pichai Chunhavajira would prioritize maintaining a harmonious relationship with the central bank, contrasting Prime Minister Srettha Thavisin’s past pressure for a rate cut, which was deemed unnecessary by Thirachai.
