Bangkok, The Bank of Thailand (BoT) summarizes the overall picture of commercial banks in the 4th quarter of 2023 and the whole year 2023, with commercial banking system loans in 2023 shrinking slightly at 0.3 percent from the same period last year. From the gradual repayment of debt of the business sector after accelerating continued expansion to enhance liquidity during the COVID period. State bank debtors are more fragile than commercial bank debtors. and admits that the debtor's position in Thailand is fragile. Ms. Suwannee Jesadasak, Assistant Governor Financial Institution Supervision Line The Bank of Thailand (BoT) announced the overall commercial banking outlook for the 4th quarter of 2023 and 2023 that the commercial banking system is stable and stable. It has a high level of capital, reserves, and liquidity. by commercial banking system loans in 2023 contracted slightly at 0.3 percent from the same period last year. From the gradual repayment of debt of the business sector after accelerating conti nued expansion to enhance liquidity during the COVID period. Especially SMEs, large businesses, the industrial sector and the government sector, along with the debt quality management of commercial banks. However, new lending has increased in volume and spread across many business sectors. Meanwhile, consumer credit can expand from personal loans. Meanwhile, automobile loans began to shrink slightly following the caution in lending by banks. The outstanding balance of non-performing loans (non-performing loan: NPL or stage 3) in the 4th quarter of 2023 decreased slightly to 492.8 billion baht, representing a ratio of NPL to total loans of 2.66 percent, which was a decrease from business loans mainly from management. Manage debt quality and debt repayment Meanwhile, outstanding NPLs of consumer loans continued to increase in all portfolios, for the proportion of loans with a significant increase in credit risk to total loans (significant increase in credit risk: SICR or stage) 2) was at 5.86 percent, slightl y increased from the previous quarter. For operating results in 2023, improved from the previous year. Mainly from an increase in net interest income. following the upward direction of interest rates Even though financial costs increased due to increases in deposit interest rates and FIDF fees returned to normal levels. Including operating expenses and increased reserve expenses. Meanwhile, non-interest income decreased from net fee income. However, it is still necessary to monitor the debt service ability of small SMEs that are under pressure. from rising production costs and some households still have a fragile financial position due to slow recovery of income. This may result in NPL gradually increasing. But it is still at a manageable level and does not cause an NPL cliff. The ratio of household debt to GDP in the third quarter of 2023 is stable from the previous quarter. Meanwhile, the business sector's debt-to-GDP ratio decreased due to the economic recovery and the slowdown in debt creation. In terms of ability to make profits Overall, it gradually improved. This was followed by the manufacturing sector, especially the chemical and petroleum product groups, while the tourism sector improved, but the cost per trip was still lower than expected. As for progress in providing assistance to debtors of financial institutions, debtors under assistance measures overall increased slightly from the previous quarter due to assistance to retail debtors through debt restructuring of SFls and non-banks. The total debt burden that received assistance totaling 3.52 trillion baht, divided into commercial banks and non-banks 1.89 trillion baht, SFls 1.63 trillion baht, while the total number of accounts receiving assistance was 6.37 million accounts. As for the progress of the rehabilitation measures (Rehabilitation Loan and Adjustment Loan, credit limit 275,886 million baht) Information as of 5 February 2024, there are 262,785 million yarn approved loans, the number of people receiving assistance is 66,224, and the aver age approved credit limit is 4.0 million baht per person. Progress on household debt relief measures Including pushing for responsible and fair lending. Operations are as follows: 1. Continuously help debtors by improving their debt structure. 2. Help chronically vulnerable debtors to be able to close their debts, and 3. Protect debtors' rights more fairly. 'State bank debtors are more fragile than commercial bank debtors. and admits that the status of debtors in Thailand is the most fragile among 7 comparable countries, such as Australia, New Zealand, with debtors from aid measures at 1%, Indonesia, China, Malaysia, and India, between 1-5%, while Thailand is Around 4%, which is considered the highest among the countries being compared. This is partly due to the economic recovery of Thailand which has caused income to not return,' said Ms. Suwannee. Source: Thai News Agency