“Non-performing loans (NPLs) have stabilised overall, but the quality of smaller-business and household loans has continued to deteriorate, albeit at a moderating pace." Thai banks' average NPL ratio hit 2.97 per cent of total loans at the end of the third quarter of 2017, only marginally higher than the 2.83 per cent recorded on December 31, 2016. The SME sector’s NPL ratio of 4.63 per cent is notably higher than the industry average, and the gap is wider than the corporate sector's ratio of 1.69 per cent. SMEs account for a significant 33 per cent of Thai commercial bank lending, and remain the biggest asset quality problem for banks. “We believe the build-up of special mention loans could moderate in 2018, accompanied by slower NPL formation in the SME segment,” said Tan.

Source: The Nation Bangkok February 15, 2018 18:00 UTC