Falling special mention (SM) loans -- those between one and three months overdue -- is an indicator of future NPL declines. The SM loan ratio fell to 2.55% in the fourth quarter last year from 2.27% in the third quarter. The lower soured loans for commercial lenders came earlier than the central bank's forecast, which saw NPLs peaking towards the end of 2017. The reduction in both NPL and SM loan ratios happened across loan types, comprising corporate, small and medium-sized enterprise (SME), and consumer loans. In response, banks are in search of new businesses to expand customer bases through partnership models to maintain profitability.

Source: Bangkok Post February 12, 2018 21:11 UTC