(Adds details)
BANGKOK, Feb 20 (Reuters) - Thai banks' non-performing
loans stood at 2.73% of total lending at the end of December
2022, down from 2.77% at the end of September, helped by debt
restructuring, the central bank said on Monday.
The banking system remained strong with high levels of
capital, loan-loss provisions and liquidity and was able to
support the economic recovery and future lending, the Bank of
Thailand said in a statement.
Bad loans are likely to increase but not sharply, while
existing debt measures are sufficient to support vulnerable
groups, assistant central bank governor Suwannee Jatsadasak told
a news conference.
The BOT will continue to monitor the debt servicing of
households, which remained fragile, and the recovery of some
business groups, the BOT said.
Loans grew 2.1% in 2022, slowing from a 6.5% rise in the
previous year, due in part to debt repayments by large
businesses, the BOT said.
Suwannee said lending was likely to grow in line with the
economy but gave no specific forecast.
Thailand's economy unexpectedly contracted in the final
quarter of 2022 from the previous three months, with the
full-year annual growth at 2.6%, versus a 1.5% expansion in the
previous year, which was among the slowest in Southeast Asia.
The state planning agency forecast economic growth of 2.7%
to 3.7% in 2023.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and
Satawasin Staporncharnchai
Editing by Ed Davies)
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