Chart of the Week: Check out the Thai banks' rising net interest margins

Thanks to declining interest costs.

According to BMI Research, the extended period of low oil prices and the rise in domestic savings relative to investment across the economy has fed through into a strengthening of the balance sheets of Thai banks.

"Total banking assets relative to equity ended 2016 at just 9.4x, marking a new multi-year low, and down considerably from the 12.7x ratio seen in 2012."

Here's more from BMI Research:

The improvement has come from a rise in capital across the sector as banks have managed to stay highly profitable in spite of the ongoing slowdown in loan growth.

Banks have continued to increase net interest income over recent years, thanks largely to declining interest costs as interest rates have fallen while interest income has managed to remain elevated.