21 Feb 2023
Financial Institutions
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 growth of household consumption in the long run. It means the Thai household debt to GDP ratio that has recently persisted at a high level is becoming a limitation to overall consumption growth.... Read more
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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 debt grew only 3.5 percent YoY, hitting an 18-year low, and slowing from the 3.7 percent YoY increase in 1Q22. In terms of structure, home loans and loans for own business still accounted for the majority of household debt (a combined portion of 53 percent of overall household debt).... 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 country’s structural problems that has pressured overall household consumption and the economy.... Read more
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 percent YoY, down from the 5.1 percent YoY growth reported for 2Q21. Noticeably, the rising 3Q21 household debts was almost on par with an increase in the value of economic activity. As a result, the household debt to GDP ratio remained static at approximately 89.3 percent, which was on par with that reported for 2Q21. ... 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 trend higher as economic activity has yet to fully recover while the economy is also experiencing the impact of the new wave of COVID-19 in the country. ... 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 loans, loans to start a business, auto hire-purchase and consumption loans such as credit card and personal loans.... Read more
7 Jul 2020
According to the latest information, Thailand’s outstanding household debt in 1Q20 fell by THB 3.56 billion compared to the previous quarter – down to THB 13.47 trillion, the first such drop in four and a half years, and close to the outstanding household debt of THB 13.48 trillion in late 2019; due to seasonal factors that still govern debt repayment by household and retail debtors. ... Read more