Bangkok: Thai bank loans contracted for the 20th consecutive month in January, contrasting with deposits that surged to 16.5 trillion baht.

According to Thai News Agency, commercial bank loans in the first month of 2026 contracted sharply by 1.67% due to the fragile economy and cautious borrowing behavior. They expect this negative trend to continue for the third consecutive year, contrasting with continued deposit growth of 16.50 trillion baht, keeping liquidity in the system high.

Kasikorn Research Center (KRC) released data on loans and deposits of 17 Thai commercial banks as of the end of January 2026. Net loans and accrued interest receivable at the end of January 2026 stood at 13.48 trillion baht, a decrease of 1.67% year-on-year (YoY), compared to a contraction of 1.50% YoY in December 2025. This marks the 20th consecutive month of loan contraction. KRC projects that overall loans in 2026 are likely to continue contracting for the third consecutive year due to several constraints, including cautious borrower behavior in taking on new debt, economic fragility, and banks' lending strategies aligned with borrowers' financial capabilities.

As of the end of January 2026, deposits stood at 16.50 trillion baht, growing by 2.18% year-on-year, compared to 2.19% year-on-year in December 2025. This growth was further supported by savings and current account deposits. Regarding special fixed deposit campaigns launched in January 2026, the number of new campaigns was similar to the number of campaigns maturing, and most remained short-term campaigns. The bank continues to prioritize managing deposit costs at an appropriate level, as overall liquidity remains high and loan recovery is still limited.