Thai banks are currently experiencing a surge in non-performing loans, reaching the highest level in three years. At the end of September, the non-performing loan ratio was 2.97% of outstanding loans, up from 2.84% in the previous quarter. This is the highest ratio since the third quarter of 2021, indicating ongoing challenges for both corporate and individual borrowers in meeting their debt obligations.
To address the concerns about rising debt levels, the Bank of Thailand is in discussions with the finance ministry to explore potential debt-relief measures. These initiatives aim to assist struggling borrowers and stabilize the financial sector amidst growing economic pressures.