BoT: Commercial Bank Loans Down 1.1% in Q4/68, NPLs Lower

Khaosod•Economy•6h ago

Reader Briefing

The Bank of Thailand reported a 1.1% contraction in commercial bank loans during the fourth quarter of 2025, attributed to shrinking business and consumer credit, while non-performing loans (NPLs) saw a reduction.

•Commercial bank loans in Thailand contracted by 1.1% in Q4/68.
•Non-performing loans (NPLs) decreased in Q4/68.
•The decline in loans was driven by SMEs and consumer credit due to high credit risk.

Overview

•In the fourth quarter of 2025, commercial bank loans experienced a contraction.
•Commercial bank loans in the fourth quarter of 2025 declined by 1.1% compared to the same period in the previous year.
•The contraction in loans was due to declining demand from businesses and consumers, influenced by economic conditions and high credit risk.
•Non-performing loans (Stage 3) in the fourth quarter of 2025 decreased to 536.0 billion baht.
•The reduction in NPLs was a result of loan repayments and effective credit quality management.
•The proportion of NPLs to total loans for commercial banks in the fourth quarter of 2025 adjusted downwards to 2.84%.
•Stage 2 loans decreased to 7.07% in the fourth quarter of 2025, primarily due to debt servicing under loan restructuring agreements.
•The Bank of Thailand (BOT) concluded that the commercial banking system remained stable with high capital, reserves, and liquidity throughout 2025.

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Key Entities

Organization

Bank of Thailand(แบงก์ชาติ)ℹ️

The central bank of Thailand, responsible for monetary policy and financial stability oversight.

Bank of Thailand(ธนาคารแห่งประเทศไทย)ℹ️

The official Thai name for the central bank, overseeing the nation's financial system.