18 Apr 2022
Financial Markets
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11 Apr 2022
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1 Apr 2022
Financial Institutions
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
28 Mar 2022
7 Mar 2022
28 Feb 2022
24 Feb 2022
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
21 Feb 2022
7 Feb 2022
4 Feb 2022
28 Jan 2022
21 Jan 2022
14 Jan 2022
7 Jan 2022
30 Dec 2021
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
24 Dec 2021
23 Dec 2021
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
17 Dec 2021
10 Dec 2021
3 Dec 2021
26 Nov 2021
16 Nov 2021
5 Nov 2021
The Baht weakened against the US dollar during the first week of November. The Baht moved in line with foreign fund flows into the Thai stock and bond markets ahead of the FOMC meeting. However, it weakened later along other regional currencies, as the US dollar rebounded on strong US labor market r... Read more
KResearch assesses that the Monetary Policy Committee (MPC) will keep its policy rate steady at 0.50 percent in the meeting slated for November 10, 2021, in light of positive economic factors that stem from Thailand’s reopening and continuous easing of lockdown measures. These have benefited the re... Read more
29 Oct 2021
The Baht moved in a volatile range but strengthened against the US Dollar. The Baht rose early in the week in line with net foreign bond buying orders, while the US Dollar lacked momentum after the US treasury yield slipped below 1.60%. However, the Baht weakened briefly around midweek in line with ... Read more
22 Oct 2021
On October 21, 2021, the Bank of Thailand (BOT) announced the relaxation of rules for home loan and top-up loan by temporarily lifting the loan-to-value (LTV) ratio to 100 percent, from now until the end of 2022. KResearch views that this relaxation of LTV regulations will help to increase homebuyer... Read more
21 Oct 2021
The Baht moved within a tight range but weakened slightly against the US dollar. The Baht fell on USD buying orders from importers, while the US dollar gained on the rising US treasury yields. The 10-year US bond yield hit a 5-month high of 1.67%. However, the Baht’s losses were capped somewhat by n... Read more
19 Oct 2021
The Baht resumed the appreciation trend. It hit its highest level in 3 weeks ofTHB33.16/USD, supported by news that the Thai government would continue its reopening plan, plus net foreign stock and bond buying orders. Meanwhile, the US Dollar weakened in line with the decline in 10-year US treasury ... Read more
KResearch expects that net profits of domestically-registered commercial banks will reach THB32.5-33.5 billion in 3Q21, declining from the THB57.2 billion reported for 2Q21 because the resurgence of COVID-19 in early 3Q21 may dent their core business income, particularly fees and service income, thu... Read more
8 Oct 2021
The Baht hit a new 4-year low of THB33.99/USD during the week of Oct 4-8. The Baht fell in line with other regional currencies, as the US dollar rose along with US treasury yields, boosted by stronger-than-expected US ISM Services Index, ADP employment and Jobless Claims reports. The US dollar also ... Read more
1 Oct 2021
The Baht hit a 4-year low of THB33.97/USD before rebounding somewhat later in the week. The Baht fell on USD-buying orders at the quarter-end and net foreign selling orders in the Thai bond market. Meanwhile, the US dollar rose along with expectations that the Fed would exit its extraordinarily easi... Read more
According to the Bank of Thailand (BOT)’s latest report on loans extended to households in 2Q21, outstanding household debt increased to THB14.27 trillion, amounting to 89.3 percent of GDP. That figure represents a decline from the 90.6 percent of GDP, its highest in 18 years, reported for 1Q21, bec... Read more
28 Sep 2021
The Baht weakened on net foreign bond selling orders and tumbling risky assets amid concerns about the default of a Chinese property developer. Meanwhile, the US dollar gained after the Fed Chair signaled a taper of its bond-buying program in November while the new dot plot hinted that the US policy... Read more
23 Sep 2021
KResearch assesses that the Monetary Policy Committee (MPC) will keep its policy rate at 0.50 percent during the meeting slated for September 29, 2021, following a decrease in the number of daily COVID-19 cases in the country. In its previous meeting in August 2021, the MPC voted 4 to 2 to maintain ... Read more
At the latest Federal Open Market Committee meeting, September 21-22, 2021,the Federal Reserve (Fed) signaled that it would begin scaling back its asset purchases via the QE measure over the next several months. Concurrently, markets have assessed that there is a higher chance of a Fed Funds rate hi... Read more
22 Sep 2021
Since August 2021, the upward trend of Thai bond yields has been one of the major issues that has drawn attention, even though the Bank of Thailand (BOT) still maintains its policy rate at a low level for 2021 and likely into 2022 amid the uncertainty surrounding economic recovery. There are several... Read more
17 Sep 2021
The Baht broke the THB33.00/USD level to hit the weakest level in 3 weeks at THB33.26/USD. A weaker Baht was in line with net foreign bond selling orders worth THB26.8 billion. The US dollar also rose along with the US bond yields, after strong US retail sales, NY Empire State Manufacturing and Phil... Read more
10 Sep 2021
The Baht rose later in the week. The Baht weakened in line with net foreign stock and bond selling orders during the week while the US dollar rose as a safe-haven currency amid concerns about the global economic slowdown hit by the delta variant. However, the Baht pared those losses somewhat and reb... Read more
7 Sep 2021
Many new investors worldwide were rushing into the cryptocurrency market recently as it offered higher returns than other assets. Retail investors in Thailand were no exception as more of them have flocked to the cryptocurrency market to capture wide gains, though their numbers remain limited. Such ... Read more
6 Sep 2021
The COVID-19 crisis has persisted for almost two years, offering various parties a clearer perspective on multiple issues – whether these are the impacts that stemmed from the pandemic or existing problems in each sector that have been exacerbated by the ongoing outbreak. Many interesting points can... Read more
3 Sep 2021
The Baht pared gains and weakened later in the week. The Baht rose early-to mid-week on net foreign stock and bond buying orders, while the US dollar faced sell-offs after the Fed Chair signaled that the Fed might taper its bond-buying program with no hurry to raise interest rates. The Baht pared ... Read more
27 Aug 2021
The Baht hit a 6-week high of THB32.61/USD. The Baht rose on technical-buying orders and position adjustments ahead of the Fed Chair’s speech at the Fed annual Jackson Hole symposium that market participants kept an eye on to assess a chance of QE tapering. The Baht also rose on net foreign stock an... Read more
23 Aug 2021
The Baht moved within a narrow range. The Baht weakened early in the week amid concerns over the Thai economic outlook due to the impact of the prolonged COVID-19 pandemic. Later, the Baht rebounded briefly on position adjustments before the release of the FOMC meeting minutes. However, the Baht tum... Read more
13 Aug 2021
The Baht remained weak, having hit a 3-year low of THB33.49/USD during the week. The Baht tumbled earlier in the week amid concerns about the domestic COVID-19 outbreak, while the US dollar rose on the Fed’s signal of a chance for QE tapering later this year. The Baht rebounded briefly on the US Dol... Read more
6 Aug 2021
From August 11, 2021 onwards, Thai Baht deposits that are protected under the Deposit Protection Agency (DPA) Act will have a lower coverage limit of THB1 million per depositor per financial institution. KResearch perceives that the objective of this imminent decrease in deposit protection is to fos... Read more
The Baht hit a near 3-year low of THB33.39/USD. The Baht faced sell-offs amid the rising risk from the currently severe COVID-19 outbreak that is set to dampen the Thai economic outlook in 2021 and 2022. In addition, the US dollar was supported by a strong US Jobless Claims report and the Fed offici... Read more
2 Aug 2021
The Baht hit its lowest level in 15-1/2 months of THB32.99/USD before rebounding somewhat at the end of the week. The Baht weakened amid concerns towards the surging number of COVID-19 cases at home, placing intense pressure on Thailand’s healthcare system. Meanwhile, the Baht along with the yuan an... Read more
30 Jul 2021
KResearch assesses that the Monetary Policy Committee (MPC) will likely keep its policy intact at 0.5 percent during the upcoming meeting scheduled for August 4, 2021 to support the Thai economic recovery amid increased risk, stemming from the Delta coronavirus (COVID-19) variant. This highly contag... Read more
29 Jul 2021
According to summary statements of assets and liabilities (C.B. 1.1), net loans to customers and accrued interest receivables at 19 domestically registered commercial banks increased approximately THB78.4 billion MoM as of the end of June 2021. Given this, KResearch assesses that loans in the Thai c... Read more
27 Jul 2021
The Baht hit a new 15-month low of THB32.94/USD. The Baht tumbled further as confirmed domestic COVID-19 cases continued to surge over 10,000 cases per day. The worsening COVID-19 situation has reinforced concerns about its impact on the path to Thailand’s economic recovery. Other Asian currencies w... Read more
16 Jul 2021
KResearch expects that the overall performance of Thai commercial banks in 2Q21 may see an increase in net profit over-year since the economy was hit by the first wave of COVID-19 in 2Q20. However, net profit in 2Q21 may dip to a mere THB 34.8 billion, against the THB38.7 billion that was registered... Read more
The Baht hit a 15-month low of THB32.80/USD towards the end of the week. The Baht traded within a narrow range earlier in the week, while the US dollar fell on a signal by the Fed Chairman that the Fed would not tighten its monetary policy in the immediate future despite a surge in inflation. Howeve... Read more
9 Jul 2021
The Baht has weakened rapidly amid heightened risks from the third wave of the COVID-19 pandemic, which tends to be difficult to control as authorities grapple with COVID-19 variants. As a result, the Baht hit a 15-month low at THB 32.73 per USD (during the trading sessions on July 9, 2021). Meanwhi... Read more
The Baht faced sell-offs during the week of July 5-9. The Baht hit a near 15-month low of THB32.73/USD amid concerns about the domestic COVID-19 situation with a surge in covid cases. The protracted COVID-19 pandemic led to an implementation of the stricter control measures and dampened the economic... Read more
2 Jul 2021
The Baht broke the THB32.00/USD level to hit THB32.27/USD, the weakest level in almost 14 months. The Baht tumbled on concerns about the domestic COVID-19 situation and data showing that Thailand’s current account balance posted a deficit for the seventh consecutive month. Meanwhile, the US dollar r... Read more
21 Jun 2021
KResearch expects that the Monetary Policy Committee (MPC) will keep its policy rate on hold at 0.50 percent during the meeting slated for June 23, 2021, in order to support Thailand’s economic recovery amid low inflationary pressures. The Thai economy remains fraught with risks from the COVID-19 o... Read more
The Baht hit a 13-month low of THB31.98/USD, before paring losses somewhat later in the week. The Baht weakened, as the US dollar rose on Fed officials’ remarks, signaling that the Fed might tighten its monetary policy sooner rather than later. The Baht fell further on concerns about the domestic CO... Read more
14 Jun 2021
The Baht strengthened against the US dollar. The Baht was supported by net foreign stock and bond buying orders and promising news regarding the mass vaccination rollout across the nation early in the week. Meanwhile, the US dollar continued to weaken in line with the declining of US bond yields (th... Read more
7 Jun 2021
The Baht weakened later in the week. The Baht rose early in the week in line with most other regional currencies and net foreign buying-orders for Thai stocks and bonds. However, the Baht pared those gains and weakened later in the week. Meanwhile, stronger-than-expected US economic data, including ... Read more
28 May 2021
The Baht edged stronger in line with the Yuan and most other regional currencies. It also gained on net foreign bond-buying orders and a stronger-than-expected Thai export data for April. Meanwhile, the US dollar was weighed down by remarks of the Fed officials signaling that the Fed would continue ... Read more
25 May 2021
While the COVID-19 outbreak continues to ravage the country and further delays economic recovery, the Thai financial system will be flush with liquidity demand throughout 2021, thanks to fundraising efforts by the government – which are required to promote spending to support the economy. Concurrent... Read more
21 May 2021
The Baht traded in a narrow range. The Baht fell slightly amid concerns about the COVID-19 situation at home, which is set to dampen the Thai economic outlook. Meanwhile, the US dollar rose after the FOMC minutes discussed the inflation outlook and a plan for adjusting the pace of asset purchases. H... Read more
14 May 2021
The Baht weakened after rising briefly early in the week as the US dollar fell on a disappointing US Non-Farm Payrolls report. However, the Thai currency tumbled later on, while the US dollar strengthened along with the rising bond yields on the back of a stronger-than-expected US CPI data, triggeri... Read more
7 May 2021
The COVID-19 outbreak has been a key factor in boosting the growth of mobile banking and e-wallet transactions. A recent survey conducted by KResearch found that Thai consumers generally conduct around 19 funds transfers and/or payments for goods and services per week via mobile banking and e-wallet... Read more
The Baht traded in a narrow range. The Baht rose slightly on position adjustment after the domestic financial markets reopened mid-week. It reversed those gains later amid concerns over the economic impacts from the third wave of COVID-19 at home. However, the Baht rebounded later in the week as the... Read more
30 Apr 2021
KResearch expects that the Monetary Policy Committee (MPC) will keep its policy rate steady at 0.50 percent during the meeting scheduled for May 5, 2021 to support economic recovery amid this period of heightened uncertainty. This economic atmosphere stems from the new COVID-19 outbreak which remain... Read more
The Baht hit a 1-month high of THB31.135/USD after breaking the THB31.20/USD level later in the week. The Baht rose along with net foreign bond buying orders, while the US dollar face sell-offs on the back of the Fed’s easing monetary policy stance. The latest FOMC meeting signaled that the Fed woul... Read more
The credit card business is one of the businesses that has been adversely affected by the COVID-19 pandemic because a credit card serves as a payment tool in lieu of cash, which means that credit card spending and credit card loans tend to decline whenever there is an economic downturn.... Read more
23 Apr 2021
The Baht hit the weakest level in a week at THB31.44/USD amid concerns about the third wave of COVID-19 at home, with the number of daily cases rising at an alarming rate. Meanwhile, the US dollar rose as a safe-haven currency later in the week after the US President Joe Biden proposed a plan to hik... Read more
22 Apr 2021
KResearch has compiled major financial data from the consolidated financial statements of nine commercial banks and their subsidiaries for 1Q21. The latest data reveals that these commercial banks and their subsidiaries recorded a net profit of Baht 46.071 billion, or growth of 47.4 percent QoQ, c... Read more
16 Apr 2021
The Baht regained strength towards the end of the week. The Baht hit a 6-month low of THB31.57/USD earlier in the week amid concerns about the third wave of COVID-19 at home as it has spread widely and could have adverse impacts on the Thai economic outlook. However, the Baht rebounded strongly on t... Read more
12 Apr 2021
KResearch assesses that net profit of domestically-registered commercial banks (Thai banking system) may have inched up during 1Q21. While income from core businesses of commercial banks may have yet to fully recover due to the pandemic’s impact on economic activity across numerous Thai industries,... Read more
9 Apr 2021
The Baht hit a 6-month low of THB31.51/USD. The Baht fell along with other regional currencies early in the week, while the US dollar extended its gains on a stronger-than-expected US non-farm payrolls report for March that helped boost hopes for the US economic recovery. The Baht then fell to a 6-m... Read more
2 Apr 2021
The Baht hit a 5-1/2 month low of THB31.40/USD. The Baht weakened, while the US dollar rose as a safe-haven currency amid concerns about media reports that a US-based hedge fund defaulted on margin calls. The US dollar also extended gains on the prospect of a strong US economic recovery, boosted by ... Read more
1 Apr 2021
Currently, the trend for digital-only banks (or digital banks) is gaining a lot of traction. Numerous central banks across Asia including Singapore, Malaysia, Taiwan and Hong Kong, to name but a few places, have issued digital banking licenses to applicants. These moves have been made in the hope of... Read more
According to the Bank of Thailand (BOT)’s latest report on loans to household in 4Q20, household debt exceeded THB14 trillion as of the 2020 year-end, which is the highest ever recorded by the BOT in 18 years. This figure amounts to 89.3 percent of 2020 GDP. In terms of growth, outstanding household... Read more
26 Mar 2021
The Baht fell along other regional currencies, while the US dollar rose on positive US economic views given by the Fed chairman and Secretary of the Treasury, as well as a better-than-expected US jobless claims report. The Baht was also hit by weak export data for February. However, the Baht’s losse... Read more
25 Mar 2021
Nano-finance under the supervision is referred to as retail loans for business purposes, which target individuals with no regular income, account statements with banks and assets prescribed as collateral. The nano-finance business contracted during 2019-2020 due to a number of factors. These include... Read more
23 Mar 2021
We at KResearch assess that the Monetary Policy Committee (MPC) will likely keep its policy rate steady at 0.50 percent during the meeting scheduled for March 24, 2021 as the government has steadily implemented a series of economic stimulus measures with the aim of easing the impact of a new wave of... Read more
The financial position of Thai businesses, particularly small and medium enterprises (SMEs), remains precarious amid the uncertainties that are hindering economic recovery. Revival of the economy remains subject to progress made in vaccinations, both domestically and internationally; as well as the ... Read more
17 Mar 2021
Yields on Thai government bonds (bond yields) have risen steadily since the beginning of 2021. For the 10-year Thai government bond, its yield surged to the highest level in two years and eight months, at 2.05 percent, so far this year. We at KResearch assess that the yield on the 10-year Thai gover... Read more
12 Mar 2021
The Baht fell to a 4-month low of THB30.95/USD. The Baht weakened early in the week, as the US dollar rose along with the rising US bond yields, supported by the US stimulus measures. The Baht pared losses somewhat on the back of the correction in US bond yields and net foreign stock and bond buying... Read more
5 Mar 2021
The Baht hit a near 4-month low of THB30.51/USD. The Baht weakened along with other Asian currencies, while the US dollar extended gains on the rising US bond yields, supported by the Fed Chair’s remarks signaling that the Fed would have no additional measures to slow the yield upward trend. The US ... Read more
25 Feb 2021
The Baht traded at the weaker side of THB30.00/USD. It fell early in the week along with net foreign stock and bond selling orders. Meanwhile, the US dollar was boosted by the rising US bond yields on the back of the US economic optimism. The US dollar’s gains were capped somewhat by the Fed Chair’s... Read more
22 Feb 2021
The Baht weakened but later rebounded later in the week. The Baht moved in a tight range before weakened later due to the strengthening greenback on the rising US bond yields amid signs of the US economic recovery. However, the Baht pared losses later in the week, while the US dollar fell on a weake... Read more
11 Feb 2021
The Baht strengthened against the US dollar. The Baht’s gains were in line with other regional currencies and risky assets amid hopes for the US stimulus measures. In addition, the US dollar fell on the Fed Chair’s remarks on easing monetary policy stance, the falling US Treasury bond yields, and th... Read more
Quantitative easing (QE) is a form of unconventional monetary policy, which is typically used by central banks of major countries, including several nations in Asia, in helping address their economic woes after having to cut their policy rates to near zero percent. The details and size of asset purc... Read more
29 Jan 2021
KResearch assesses that the Monetary Policy Committee (MPC) may keep its policy rate steady at 0.50 percent during its first meeting of 2021, scheduled for February 3, because the government has just implemented new monetary and fiscal measures. Its spending under the new fiscal stimulus package acc... Read more
The Baht rose later in the week. The Baht traded in a narrow range earlier in the week, awaiting new factors, before falling later as the US dollar gained on the Fed’s meeting outcomes, i.e., its policy rate and QE program were kept unchanged, while no new easing measures were announced. The US doll... Read more
27 Jan 2021
Based on 4Q20 financial statements of commercial banks, KResearch assesses that non-performing loans (NPLs) in the commercial banking system may reach approximately THB523 billion as of the end of 2020, accounting for 3.16 percent of total loans. For 2021, we are of the view that NPLs will likely tr... Read more
22 Jan 2021
The Baht rebounded slightly after having fallen earlier in the week in line with other regional currencies amid a number of risks. These include concerns about the economic impacts from the COVID-19 pandemic, problems concerning COVID-19 vaccinations in many countries, and the US political situation... Read more
Aside from growing risks posed by the new COVID-19 outbreak which may hamper Thailand’s economic recovery in 2021, another important factor that warrants attention is the rising fund raising cost in the Thai bond market early in the year. This situation is partly due to projections regarding the inc... Read more
15 Jan 2021
The Baht traded in a narrow range, but rose slightly later in the week. The Baht fell in line with the weaker Yuan and other regional currencies while the US dollar gained its strength on the rising US bond yields and buying orders amid US political uncertainty. However, the Baht pared losses somew... Read more
13 Jan 2021
The new COVID-19 outbreak which has dragged on into 2021 continues to affect economic activity that had previously been on the verge of recovery. Such circumstances have further intensified the issues of financial vulnerability, lack of liquidity and deteriorating debt servicing ability among many ... Read more
8 Jan 2021
The Baht weakened at the end of the week. The Baht rose early in the week in line with the Yuan and other regional currencies while the US dollar had no new supportive factors. The Thai currency then pared gains along with weakening regional peers, as well as net foreign selling orders for Thai bon... Read more
6 Jan 2021
Since the start of 2021, major currencies and Asian currencies, including the Chinese Yuan, have continued to strengthen while the greenback has been facing sell-off, pressured by the Fed’s quantitative easing and the US presidential transition. Meanwhile, the Thai Baht’s value has surged past the 3... Read more
30 Dec 2020
According to the Bank of Thailand’s latest report on loans to households during 3Q20, Thailand’s household debt remained at a high level and is projected to rise steadily amid weak economic conditions. The household debt to GDP ratio hit a new 18-year high of 86.6 percent in 3Q20, driven by new home... Read more
29 Dec 2020
In 2020, the COVID-19 pandemic has not only dealt a blow to economic activity, but pressured operating results of commercial banks in many ways. KResearch expects that net profit of domestic-registered commercial banks may reach THB144 billion, representing the lowest level in nine years since 2012.... Read more
18 Dec 2020
The Baht broke the THB30.00/USD level. The Baht traded in a narrow range earlier in the week, before strengthened later and hit a 7-1/2 year high of THB29.76/USD on the back of the US Treasury report on macroeconomic and foreign exchange policies of major trading partners of the US that added Thail... Read more
17 Dec 2020
KResearch expects that the Monetary Policy Committee (MPC) will keep its policy rate steady at 0.50 percent during the meeting slated for December 23, 2020 because there are signs showing steady recovery in the Thai economy after the government implemented measures aimed at stimulating the economy a... Read more
16 Dec 2020
Auto hire purchase is another business that has been affected by the COVID-19 pandemic. Its impact on purchasing power consequently affected the outstanding balance of auto loans in 3Q20, causing a slower growth rate at 3.5 percent, as opposed to 7.7 percent in 2019. The slowdown resulted from a dec... Read more
11 Dec 2020
The Baht gradually strengthened to test the THB30.00/USD level before a long holiday in Thailand. The Baht rose on weaker US dollar sentiment and the US dollar sell-offs from exporters. In addition, the Baht’s gains were led by foreign net buying orders for Thai stocks on Tuesday and for Thai bonds... Read more