25 Mar 2023
Financial Institutions
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21 Feb 2023
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
24 Jan 2023
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
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
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
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
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
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
16 Nov 2022
Thailand’s financial access rate is higher than most other APEC member economies, but there are challenges ahead ... Read more
11 Nov 2022
The Baht strengthens…but close attention must be paid to volatility sparked by several factors, going forward ... Read more
17 Oct 2022
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
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
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
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
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
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
Impacts on the Thai banking system if banks defer interest rate increase ... Read more
26 Jul 2022
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
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
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
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
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
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
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
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
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
7 Feb 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
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
5 Nov 2021
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
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
19 Oct 2021
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