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Bad loan pressure shifts to vulnerable borrowers

Bangkok Post

|

May 22, 2026

New non-performing loans (NPLs) in the banking sector declined in the first quarter this year as banks became more cautious in extending credit, while re-entry NPLs continued to rise, driven by vulnerable borrower segments, according to the Bank of Thailand.

- SOMRUEDEE BANCHONGDUANG

Somchai Lertlarpwasin, assistant governor for the financial institutions supervision group at the central bank, said last week the volume of new NPLs slowed across all loan portfolios in the first quarter year-on-year. The slowdown was attributed to continued debt assistance measures by banks, including debt restructuring, particularly preventative restructuring efforts.

The regulator's debt restructuring schemes were cited as contributing factors, in addition to debt assistance programmes offered to borrowers affected by the war in the Middle East.

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