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Financial Market & Institutions Analysis

11 Apr 2023

Financial Institutions

Thai banks in 1Q23…Despite growing income from core businesses, cautious outlook for bad debts remained (Current Issue No.3403)

Thai banks in 1Q23…Despite growing income from core businesses, cautious outlook for bad debts remained ... Read more

21 Feb 2023

Financial Institutions

Overall household debt set to drop to 84.0-86.5 percent of GDP in 2023…High debt burdens continue to limit future consumption growth (Current Issue No.3383)

KResearch conducted a study on the effects of high household debt in Thailand and found results that are consistent with those of the Bank for International Settlement (BIS). As evidenced, increasing household debt has a positive impact on consumption in the short term, but will reduce the potential... Read more

30 Jan 2023

Financial Markets

The Baht moved within a narrow range before weakening at the end of the week while the SET rose over-week.

The Baht moved within a narrow range before weakening at the end of the week while the SET rose over-week.... Read more

24 Jan 2023

Financial Institutions

First MPC meeting of the year January 25, 2023 MPC is expected to raise its policy rate in continuation from the previous year, by 0.25 percent to 1.50 percent (Business Brief No.3890)

First MPC meeting of the year January 25, 2023 MPC is expected to raise its policy rate in continuation from the previous year, by 0.25 percent to 1.50 percent ... Read more

30 Dec 2022

Financial Institutions

Online payment sees continual growth; business expansion among service providers remains a key challenge (Current Issue No.3378)

KResearch is of the view that online payment among Thai consumers will likely see further expansion. In 2023, the share of payments via internet banking, mobile banking and e-money may reach 95 percent of total payment transactions. The volume is projected to be 36,510 - 37,970 million transactions,... Read more

21 Dec 2022

Financial Institutions

Outlook for Thai Banks in 2023… Bracing for change in the financial landscape (Current Issue No. 3373)

In 2022, Thai banks have operated business amid numerous challenges. These include debt resolution for pandemic-stricken borrowers; change from broad-based measures issued by the policymakers in support of financial institutions which provide assistance to borrowers to specific measures which are gr... Read more

28 Nov 2022

Financial Institutions

MPC meeting, Nov. 30, 2022 Policy likely to be raised by another 0.25% to 1.25% amid elevated inflationary pressures while economic recovery is on track (Business Brief No.3982)

MPC meeting, Nov. 30, 2022 Policy likely to be raised by another 0.25% to 1.25% amid elevated inflationary pressures while economic recovery is on track ... Read more

24 Nov 2022

Financial Institutions

2022…Another challenging year for investment in risk assets (Current Issue No.3365)

Fast approaching is the last month of 2022, a year in which Thailand’s economy has bottomed out following the years-long impacts of the COVID-19 pandemic. In principle, the economic recovery should be a supporting factor for investment in risk assets. In fact, however, overall investment has proven ... Read more

21 Nov 2022

Financial Institutions

Increased competition seen in deposit market (Current Issue No.3364)

The Monetary Policy Committee (MPC) began raising its policy rates at the August and September 2022 meetings by 0.25 percent each, bringing the current policy rate to 1.00 percent. However, most large commercial banks did not hike their interest rates immediately and waited until October 2022, parti... Read more

21 Nov 2022

Financial Markets

The Baht was volatile while the SET closed near last week’s level

The Baht was volatile while the SET closed near last week’s level... Read more

16 Nov 2022

Financial Institutions

Thailand’s financial access rate is higher than most other APEC member economies, but there are challenges ahead (Current Issue No.3360)

Thailand’s financial access rate is higher than most other APEC member economies, but there are challenges ahead ... Read more

11 Nov 2022

Financial Institutions

The Baht strengthens…but close attention must be paid to volatility sparked by several factors, going forward (Current Issue No.3358)

The Baht strengthens…but close attention must be paid to volatility sparked by several factors, going forward ... Read more

17 Oct 2022

Financial Institutions

Gradual post-lockdown economic recovery expected to support commercial banks’ income from core businesses in 3Q22…but close attention must be paid to economic uncertainty going forward (Current Issue No.3350)

Gradual post-lockdown economic recovery expected to support commercial banks’ income from core businesses in 3Q22…but close attention must be paid to economic uncertainty going forward ... Read more

3 Oct 2022

Financial Institutions

Household debt dropped to 88.2 percent of GDP in 2Q22… Households avoid incurring large debts, but still use unsecured loans to enhance short-term liquidity (Current Issue No.3349)

Outstanding debt of Thai households rose to THB 14.76 trillion in 2Q22. However, when compared to economic value, the household debt to GDP ratio in 2Q22 dropped to 88.2 percent, against the 89.2 percent recorded for 1Q22. Additionally, when compared to the same period of last year, the household de... Read more

27 Sep 2022

Financial Institutions

2022 Policy rate will likely be raised by 0.25 percent to 1.00 percent amid pressure from the weakest Baht in 16 years (Business Brief No.3979)

The Monetary Policy Committee (MPC) is expected to raise its policy rate by 0.25 percent to 1.00 percent at its upcoming meeting amid increased inflationary pressure and steady depreciation of the Baht. As previously signaled, the MPC may gradually speed up its policy rate hikes amid the fragile rec... Read more

21 Sep 2022

Financial Institutions

Thai Baht sinks to a new 16-year low, pressured mainly by strong US dollar (Current Issue No.3347)

The Thai Baht recently tested the THB37.20/USD level, its new low in almost 16 years since October 2006, amid the US Federal Reserve (Fed)’s hawkish signals of further rate hikes. However, the Baht’s movements have been in alignment with the Yuan and other regional currencies since the beginning of ... Read more

13 Sep 2022

Financial Institutions

Digital Personal Loan … Lenders are in the early stage of learning and adjusting their businesses (Current Issue No.3343)

KResearch views that digital personal loan market, according to the Bank of Thailand’s guidelines on the use of alternative data for credit analysis in loan approval process, is likely to see “gradual growth” for 2022. As evidenced, digital personal loan outstanding is at approximately THB 7.92-8.5 ... Read more

8 Aug 2022

Financial Institutions

MPC meeting, August 10, 2022 Policy rate will likely be raised by 0.25% to 0.75% amid increased inflation pressure and brighter outlook for the Thai economy (Business Brief No.3977)

It is expected that the Monetary Policy Committee (MPC) will raise its policy rate by 0.25 percent to 0.75 percent at the upcoming meeting. Amid increased inflationary pressure and steady recovery seen in the Thai economy, the MPC may gradually speed up its policy rate hikes ahead. ... Read more

27 Jul 2022

Financial Institutions

Impacts on the Thai banking system if banks defer interest rate increase (Current Issue No.3338)

Impacts on the Thai banking system if banks defer interest rate increase ... Read more

26 Jul 2022

Financial Institutions

Outlook for Sustainable Finance (Current Issue No.3336)

Sustainable finance has seen rapid growth worldwide. In 2021, sustainability debt instruments were valued at USD 929,700 million, or 10x growth over the past five years, while sustainability loans amounted to USD 716,561 million, or 7x growth from 2018. Meanwhile, Thailand’s total outstanding value ... Read more

26 Jul 2022

Financial Institutions

Outlook for Sustainable Finance (Current Issue No.3336)

Sustainable finance has seen rapid growth worldwide. In 2021, sustainability debt instruments were valued at USD 929,700 million, or 10x growth over the past five years, while sustainability loans amounted to USD 716,561 million, or 7x growth from 2018. ... Read more

15 Jul 2022

Financial Institutions

Thai commercial banks, 2H22: Supervision of fragile debtors needed as interest rates are set to increase (Current Issue No.3331)

We at KResearch assess that core business income of commercial banks in Thailand remained weak during 2Q22. Particularly, their non-interest income was pressured by murky economic conditions, while volatility in the capital market also hurt their investment portfolios. However, net interest income a... Read more

17 Jun 2022

Financial Institutions

Outlook for Used Car Loans 2022: Opportunity to grow on account of pricing, while rising sales volume limited by a decline in car auctions (Business Brief No.3975)

KResearch assesses that used car loans in the commercial banking system in 2022 are projected to rise to 5-7 percent of total used car loans, approximately THB 300 billion, thanks to the pricing factor as reflected by the Used Vehicle Price Index (UVPI) and intense competition among commercial banks... Read more

13 Jun 2022

Financial Institutions

Debenture market 2022: Growing amid upward trend in interest rates while issuance of long-term debentures set to reach THB1.10-1.20 trillion (Business Brief No.3972)

KResearch assesses that monetary policy tightening attempts by the US Federal Reserve (Fed) and other leading central banks in the West and Asia (with the exception of the People’s Bank of China and Bank of Japan) will become more consistent during 2H22. Central banks that are expected to raise thei... Read more

2 Jun 2022

Financial Institutions

Policy rate will likely be maintained at 0.50% as economy remains fragile, but policy rate hike may begin in 4Q22 (Business Brief No.3971)

It is expected that the Monetary Policy Committee (MPC) will keep its policy rate steady at 0.50 percent at the upcoming MPC meeting, with the aim of supporting the economy that has yet to fully recover. However, the MPC will continue to experience more challenges in maintaining its accommodative mo... Read more

1 Apr 2022

Financial Institutions

Household debts set to drop to 86.5-88.5% of GDP in 2022, but financial positions of households will remain weak (Current Issue No.3318)

Outstanding debt of Thai households grew 3.9 percent in 2021, which was on par with that reported for 2020. Due to the slow economic growth, the household debt to GDP ratio in 2021 surged to 90.1 percent, against the 89.7 percent recorded for 2020. The high household debt to GDP ratio is one of the ... Read more

24 Mar 2022

Financial Institutions

Trend for auto title loan in 2022: Tapping into the low-end market (Business Brief No.3967)

Auto title loan saw high growth amid the COVID-19 crisis. The number of loan accounts increased by around 50 percent to 4.20 million accounts, with total outstanding loan rising 45 percent to a total of THB181 billion at the end of 2021, compared to the end of 2019. Meanwhile, non-performing loans ... Read more

24 Feb 2022

Financial Institutions

Outlook for life insurance business 2022: Opportunity to restore purchasing power in line with economic recovery (Current Issue No.3307)

Life insurance business saw a slight positive turn in 2021, after undergoing a contraction for two consecutive years. This growth can be attributed to increased sales of new insurance policies, particularly single-premium life insurance, while renewal year premium has shown no growth. ... Read more

30 Dec 2021

Financial Institutions

Households Become More Cautious in Assuming Debts Outstanding Household Debts Grew at Slower Rate in 3Q21 (Business Brief No.3961)

The latest report on household lending shows that Thai households continue to incur more debts, albeit at a slower pace in line with economic conditions that are being affected by the COVID-19 pandemic. In 3Q21, outstanding household debts stood at THB14.35 trillion, an increase of approximately 4.2... Read more

23 Dec 2021

Financial Institutions

Commercial Banking Business Set to Face Numerous Challenges amid Omicron in 2022 (Current Issue No.3293)

Uncertainties surrounding COVID-19 are resurfacing during the transition towards 2022 and will not only affect the pace of Thai economic recovery, but also the commercial banking business over the course of next year. If Thailand can effectively control the Omicron variant of COVID-19, commercial ba... Read more