SCB prepared to withstand tariff impact

Stress test indicates bank can handle risk

- SOMRUEDI BANCHONGDUANG

Siam Commercial Bank (SCB) believes it is properly positioned to withstand tariff-related uncertainties following a stress test mandated by the Bank of Thailand.

According to Kris Chantanotoke, chief executive of SCB, the bank conducted a stress test to assess the potential impact of the US tariffs, in compliance with the regulator's requirements.

He said the results indicate the bank is prepared to manage the associated risks.

In response to the potential risks, the central bank recently directed the country’s six domestic systemically important banks (D-SIBs) to conduct stress tests to evaluate the impact of tariffs, particularly on exporters to the US and local small and medium-sized enterprises (SMEs) vulnerable to an influx of inexpensive imported goods.

The regulator said it wants to understand the impact across industries and borrower segments, including SMEs and retail clients, to design appropriate financial assistance measures.

On average, SME loans account for 20-30% of D-SIBs’ loan portfolios, though the impact will vary depending on each bank's specific loan exposure.

Mr Kris said SCB, Thailand's fourth-largest lender by total assets, manages its export loans through a balanced and diversified portfolio. For clients exporting directly to the US, the bank is ready to offer tailored support and solutions.