BANGKOK, 18 November 2013 Slowing pace of investment and private consumption in the 3rd quarter have resulted in a slow-down in bank lending, although the NPL amount remains steady, according to the Bank of Thailand (BOT).
BOT Senior Director for Financial Institutions Strategy Department, Anupap Kuvinichkul, revealed that outstanding loans by commercial banks totaled 10.4 trillion baht in the 3rd quarter. This was an 11.6% increase from the same period of the previous year. Business lending expanded 9.9%, slightly below the previous quarter’s figure, due to slow-down in lending to the manufacturing sector and the financial sector. SMEs loans expanded 14.7%, and consumption lending expanded 15.7%.
Mr. Anupap said the across-the-board slow-down in lending growth resulted from consumers decelerating their consumptions because of higher debt burden, as well as banks having increased their stringency in issuing loans.
Non-performing loans stood at 266 billion baht.
