Bangkok Bank stands out for its corporate-heavy loan portfolio, which accounts for roughly 49% of total lending, alongside robust provisioning coverage. This provides a cushion against deteriorating asset quality, with its non-performing loan (NPL) ratio expected to stabilise at around 3%.
Similarly, Krung Thai Bank benefits from a strong sovereign-linked loan book and lower exposure to small and medium-sized enterprises (SMEs), which are typically more vulnerable during economic downturns. A significant portion of its retail lending is extended to government employees with stable incomes, helping to contain risk. Its credit costs are projected to remain manageable at around 2.9%.
In contrast, lenders such as Siam Commercial Bank and Kasikornbank may face higher credit costs due to greater exposure to more vulnerable borrower segments, including SMEs and unsecured retail loans.
Banks have already begun tightening lending standards, particularly for higher-risk segments, reflecting a more cautious approach to underwriting amid rising uncertainty. However, Kwok noted that financial institutions are still expected to play a supportive role in government efforts to assist vulnerable borrowers.
“Banks will remain cautious in their lending, but they will also continue to support targeted relief measures to help those most affected by economic pressures,” she said.
As external risks remain elevated and domestic recovery continues at a modest pace, the interplay between household debt, rising costs, and banking sector resilience will remain a key factor shaping Thailand’s economic outlook in the coming quarters.