Thai Banks’ NPLs to Decline

Thai banks’ non-performing loans are expected to fall over the next six months as the economy is improving, the finance minister said on Wednesday, Reuters reported. A rise last year in NPLs reflected economic conditions that are worse than current ones, Finance Minister Apisak Tantivorawong told reporters. “So over the next six months, NPLs will improve. That’s why we are trying to get the economy fully recovering,” said Apisak, who was former Krung Thai Bank chief. The minister gave no numbers on NPL levels. At the end of September, they accounted for 2.89% of total Thai lending up from 2.55% at the end of 2015, central bank data showed. Market leader Bangkok Bank said its NPLs were at 3.2% of lending at the end of 2016, up from 2.8% at end-2015. The finance ministry has forecast economic growth at 3.6% this year and 3.2% for 2016.