Thai banks to see gradually declining delinquencies in 2017

But asset quality pressures will persist.

Fitch Ratings' outlook on Thai banks in 2017 is for the terrain to remain difficult, with continued pressures particularly on asset quality and profitability. Banks will be hampered by the low-interest-rate environment, muted levels of economic growth, and higher loan delinquencies (particularly in the SME and retail segments).

Nevertheless, Fitch expects that these pressures should remain manageable for most banks, which is why most ratings remain on stable outlook. We expect the weaker financial ratios to be in line with what would be seen in a normal downtrend in the business cycle.

"Asset-quality risks are mitigated by relatively high loan-loss reserve coverage (average for the sector is 127%), and we expect the pace of delinquencies to decline gradually in 2017. Banks should also continue to be able to maintain their solid capital ratios (sector Tier 1 ratio is 14.2%), which presents another significant buffer against a worse-than-expected deterioration in sector conditions," says Fitch.

Also Read

Cambodia enables QR payments from foreign e-wallets through Alipay+

Hong Kong to rename ‘virtual banks’ to ‘digital banks’

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit