Display mode (Doesn't show in master page preview)

26 Dec 2025

Financial Institutions

Banks’ rate cuts ease debtors’ burden, but credit support remains limited; loan growth expected to contract for a third consecutive year in 2026 (Current Issue No.3631 Full Ed.)

คะแนนเฉลี่ย
  • Throughout 2025, commercial banks lowered lending rates four times in line with policy rate reductions. The latest round of rate cuts took effect during 22–24 December 2025. KResearch assesses that the net positive impact on debtors will materialize gradually in 2026. Interest expenses for corporate and retail borrowers are expected to decline by a combined THB 3.8–4.8 billion in the first half of 2026. 
  • However, interest rate cuts alone are expected to have a limited impact on credit extension, as the overall economic recovery remains fragile. KResearch therefore maintains its 2026 forecast for loan growth in the Thai banking system at -0.7 percent. 
  • Close attention must also be paid to debt-servicing capacity among SMEs and retail borrowers. The non-performing loan (NPL) ratio in 2026 is expected to remain elevated at around 2.80–2.97 percent of total loans.

View full article


Financial Institutions