Thai Banks 'Capable of Facing Prolonged Crisis'

Anti-government protesters rally at the Port Authority of Thailand, 30 April 2014.

BANGKOK — Despite the economic fallout caused by Thailand’s protracted political crisis, Thai commercial banks are still enjoying a high level of stability, a top official insists.

Salinee Wangtal, deputy director of the Bank of Thailand (BOT), says an analyst team has run a simulation of "the worst case scenario" for Thailand’s economy, and discovered that the country’s financial sector is well-equipped to survive a prolonged economic recession.

Even with "2-3 years" of recession, Thai commercial banks will still be able to function normally as the pillar of the national economy, Ms. Salinee claimed.

She added that Thai banks have a vast reserve of emergency funds to cover the cost of defaulted debts.

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In fact, she said, overall credits among the Thai commercial banks have been gradually growing over the past few months.

"The growth is lower than the same period last year … but it's a normal pace for a slowing economy," Ms. Salinee said.  

 

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