BoT prepares deep installment measures as Q2 NPLs remain stable

Prachachat•Economy•6d ago

Reader Briefing

The Bank of Thailand reports stable non-performing loans for the second quarter of 2026 but warns of increasing risks among vulnerable debtors.

•Bank NPLs in Q2 2026 were 534.8 billion baht, or 2.82% of total loans.
•The Bank of Thailand attributes the stable NPL ratio to commercial banks accelerating the sale of bad debts.
•The Bank of Thailand is preparing temporary deep installment adjustment measures to handle potential severe impacts from war.

•Bank NPLs in Q2 2026 stood at 534.8 billion baht, representing 2.82% of total loans, a slight decrease from 2.85% in the previous quarter.
•Suchot Piamchon stated that the stability of the NPL ratio resulted from commercial banks selling off bad debts, particularly SME and housing loans.
•Retail or consumer loan NPLs remained stable at 3.19%, with personal loans at 2.81% and hire-purchase loans increasing from 2.02% to 2.05%.
•Suchot Piamchon noted a trend of increasing NPL flow in Q2 2026, specifically through Re-entry where previously recovered loans become NPLs again.
•The Bank of Thailand has implemented SMEs Credit Boost, with 56 billion baht in approved loans, representing approximately 70% of the target.
•The Bank of Thailand has completed the product program for the SMEs Secure+ project and is currently initiating implementation.
•The Bank of Thailand extended the Asset warehousing and LTV measures and provided pre-emptive debt restructuring for those affected by the economy and energy prices.
•The Bank of Thailand has prepared flexible criteria to allow banks to temporarily deeply reduce installment payments if war situations worsen.

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Suchot Piamchon

"The decrease in the NPL Ratio quarter-on-quarter is a result of selling debt or writing it off from the portfolio."

การที่ NPL Ratio ปรับลดลงไตรมาสต่อไตรมาส เป็นผลมาจากการขายหนี้ หรือ การ Write off ออกไปจากพอร์ต

Bank of Thailand(ธปท.)ℹ️

The central bank that monitors NPLs and prepares measures to assist vulnerable debtors.

Suchot Piamchon(สุโชติ เปี่ยมชล)

Senior Director of the Model Validation and Financial Institution Risk Analysis Department at the Bank of Thailand.

SMEs Credit Boost

A credit risk sharing mechanism for new loans provided by the Bank of Thailand.

SMEs Secure+

A project by the Bank of Thailand for which banks have completed the product program.

Asset warehousing

A measure whose duration has been extended by the Bank of Thailand.

LTV

A measure whose duration has been extended by the Bank of Thailand.