BANGKOK (Jan 27): Thai banks facing an uptick in Covid-19-fuelled bad loans got a reprieve with the central bank allowing them to form joint ventures with asset management companies to handle their non-performing credits and assets. The joint ventures "will help financial institutions manage non-performing assets more efficiently as well as to bring in the experience and expertise of asset management companies", Rung said. "This will provide financial institutions with additional resources to better take care of debtors who are in the recovery period." The ratio of non-performing loans was stable in the fourth quarter of last year due to debt-relief measures, she said. Non-performing loans at Thai banks rose to 3.14% of their total lending at the end of September, up from 3.09% at mid-year, according to central bank data.

Source: The Edge Markets January 28, 2022 01:05 UTC