Thailand’s top three banks have combined non-performing loans (NPLs)of more than US$9.6 billion, the highest in Southeast Asia, but Thai banksoverall still have a high level of reserves for bad debts, says the Federationof Thai Capital Market Organizations (Fetco).
Fetco recently released its Capital Market Snapshot report entitled”Aspects in Stability of the Banking Industry in Asean”, revealinginformation about debt, deposit and loan risks in the commercial bankingsector in Thailand and other Asean countries.
According to the report, Singapore has the highest proportion of accounts receivable and deposits from customers (non-financial institutions)compared with GDP, at 228% and 287%, respectively. Thailand, Vietnamand Malaysia have similar proportions of accounts receivable and depositscompared with their respective countries’ GDPs, while the Philippines hasthe lowest such figures at 56.4% and 85.4%, respectively.
Thailand has the highest value of bank deposits among six Asean countriesat $55.4 billion, accounting for 17% of GDP. Meanwhile, the total value ofNPLs for the top three Thai banks exceeded $9.6 billion, or 1.69% of totaldebts in the country, Fetco said.
In the Philippines, the total NPLs of the top three banks is more than $2.5billion, accounting for 1.23% of total debts, while the sum for the threelargest banks in Indonesia exceeds $4.6 billion, accounting for 1.21% ofthe total debts there.
“The level of bad debt for Thai banks is 4% of the total debt, but there is aconsistently high level of provision for bad debts,” noted the report. The proportion of short-term deposit accounts (less than one year) inThailand has been on an upward trend since 2017. Singapore has the lowest economic risks, while its banking sector has themost lending and deposits from customers in the region when comparedwith GDP. Malaysia has the largest number of banks operating in Asean at 311, whileThailand has the smallest number at only 58.
By Nuntawun Polkuamdee. 30 June 2023.
Source: Bangkok Post. https://www.bangkokpost.com/business/2602366/thai-banks-top-asean-bad-debt-rankings. 8 July 2023.
You may also like
The Fully Autonomous Ship Project is entering its second phase: “Testing”
The Fully Autonomous Ship Project is entering its second phase: “Testing”. We are now entering the second phase of MEGURI2040, a project led by the Nippon Foundation, aimed at creating a fully autonomous ship with a clear objective: the implementation of all autonomous navigation technologies developed during phase 1 by 2025. The program will focus on achieving this main goal [...]
24/09/2023
Container shipping market back in 2019
Container shipping market back in 2019. Alan Murphy, CEO and founder of Copenhagen supply chain analyst Sea Intelligence, has warned of widespread service cancellations on major trade lanes across the Pacific Ocean and between Asia and Europe between now and the end of the year. _____________________________________ Murphy was speaking week at the Saudi Maritime Congress held in Damman this week. [...]
24/09/2023
DP World eyes logistics and supply chain expansion in SE Asia
DP World eyes logistics and supply chain expansion in SE Asia. DP World is looking to expand its logistics and supply chain capabilities in the Southeast Asian region building on its existing terminal business. “As we seek to grow our legacy ports & terminals business, we are also working to significantly enhance our capabilities within the fuller spectrum of [...]
24/09/2023