Commercial banks' capital adequacy ratio (CAR) stood at 18.7% of risk-weighted assets at the end of March. With the solid capital base, banks do not need to recapitalise, Mr Don said, adding that the central bank's debt relief measures also help financial institutions to keep a lid on bad debts. He said the central bank has closely monitored unemployment, which is a key vulnerable area hurting economic momentum. Mr Don said the central bank agrees with the government's priority of using the economic rehabilitation budget worth 400 billion baht to tackle unemployment. Despite the pickup signs in May, the economy continued to see a contraction due to the ebbing external demand in both tourism and merchandise exports.

Source: Bangkok Post June 30, 2020 21:45 UTC