Bank loans set to edge up 0.6%

Bank loans are expected to increase marginally by 0.6% to 14.8 trillion baht this year, bouncing back from a contraction last year, driven by large businesses while small and medium-sized enterprises (SMEs) and retail borrowers remain in the red, says Kasikorn Research Center (K-Research).

- NAREERAT WIRIYAPONG.

Kanjana Chockpisansin, the think tank’s head of research, banking and finance, said bank loans are likely to rebound in the second half of this year amid a downward interest rate trend, with loans to large businesses a major driver.

K-Research anticipates bank loans edging up by 0.6% to 14.8 trillion baht this year, with large corporate loans rising 3%.

Loans to SMEs and retail borrowers should each contract by 1%, respectively, noted the research house.

Business loans, including those extended to companies of all sizes, are projected to drop 1.5% this year. In 2024, bank loans decreased 0.4%, the first annual decline since 2010.

“Bank loans have slightly recovered, mainly those extended to large companies, while credit extended to SMEs remains slow,’ she told the Bangkok Post.