Thai banks to keep loan brake on in 2025 amid debt concern
Banking chiefs cite worry over bad debt but expect situation to improve as economy recovers and remedial measures take hold
Thai banking chiefs say vigilance in lending is needed throughout 2025, citing concerns over bad debt amid the country's sluggish economic recovery.
Kattiya Indaravijaya, CEO of Kasikorn Bank (KBANK), said cautious lending remains a priority.
"We expect to keep bad debt below 3% this year, partly due to government measures," she stated.
KBank's strategy focuses on lending to existing customers with proven track records, acknowledging the government's "You Fight, We Help" initiative as beneficial for both customers and banks.
Krung Thai Bank's president and executive director, Payong Srivanich, stressed that debt management continues to be a crucial concern for the banking sector.
"This year, we are still in cautious mode. We can’t close our eyes and approve loans readily, but we have hope that transition will come with opportunities," he said.
He emphasised the importance of addressing structural problems to achieve sustainable solutions.
Bangkok Bank president Chartsiri Sophonpanich expressed confidence in managing debt quality.
"Although the Thai economy will fluctuate somewhat due to various issues and factors, we believe that recovery will benefit the entire population," he said, highlighting the bank's commitment to monitoring at-risk debtors and providing assistance through various measures.
TTB (TMB Thanachart) general manager Thakorn Piyaphan signaled the banking sector would maintain strict lending criteria through 2025.
However, he was optimistic about non-performing loans, saying "bad debt should improve" due to remedial measures, including debt write-offs and restructuring programmes.
The banking sector's collective approach reflects a measured response to economic challenges, with all four executives emphasising the importance of the government's debt relief initiatives, particularly the "You Fight, We Help" programme. This scheme allows dialogue between banks and customers to develop collaborative solutions for debt management.
The executives also highlighted the banking sector's role in supporting economic recovery through various initiatives, including programmes to enhance competitiveness and income generation for households and SMEs. These efforts include promoting labour skill certification for higher wages and encouraging larger businesses to support their SME suppliers within supply chains.
