Bangkok: Kasikorn Research Center highlights the impact of the recent interest rate cut by the Monetary Policy Committee (MPC) on reducing business costs. The center points out that commercial banks are aligning with the MPC's resolution by slashing interest rates across the board. This move is anticipated to inject over 5 billion baht back into the economic system this year, providing relief to businesses and individuals.
According to Thai News Agency, the Q1 2025 data from the National Credit Bureau (NCB) reveals an increase in non-performing loans (NPLs) among smaller businesses, despite a decrease in overall NPLs following debt restructuring under Responsible Lending (RL) criteria. Ms. Thanyalak Watcharachaisurapol, Deputy Managing Director of Kasikorn Research Center Co., Ltd., reported that in Q2 2025, the disclosed NPLs of nine commercial banks listed on the Stock Exchange of Thailand (SET) saw a slight uptick. This trend was more pronounced among small business customers, with Super Micro NPLs accounting for 14.81% of total loans.
Debt restructuring measures based on RL criteria and proactive debt quality management have shown a downward trend in overdue debts from mid-2024 onwards. The recent 0.25% reduction in the policy interest rate by the MPC to 1.50% per annum prompted commercial banks to reduce lending rates by the same margin, aiding businesses with floating interest rates.
The MPC is expected to continue cutting interest rates, although this depends on the economic situation, the impact of tariffs, and the effectiveness of the rate cuts. Businesses are advised to brace for economic challenges while seeking additional income sources. The government is urged to expedite the 2026 budget disbursement to tackle immediate issues and enhance competitiveness, especially as export figures are projected to decline in the latter half of 2025.
Mr. Krisada Kaewhiran, Senior Researcher at Kasikorn Research Center Co., Ltd., noted that businesses linked to both domestic and international purchasing power, such as the manufacturing and accommodation sectors, are of significant concern due to rising overdue debt. The economic outlook remains uncertain, influenced by US tariffs and sluggish domestic purchasing power, which could further affect debt repayment capabilities.
Dr. Kanchana Chokpaisansin, Research Director at Kasikorn Research Center Co., Ltd., emphasized the importance of early debt restructuring. While most business loan accounts are currently in normal status, effective debt management measures tailored to customer needs are crucial. The center suggests policies for temporary repayment adjustments and asset warehousing projects to prevent defaults.
Promoting out-of-court settlements, such as asset transfers to settle debts, is recommended, with government support to reduce related fees. A faster legal process could also aid in resolving debts more efficiently. Ultimately, sustainable management requires favorable macroeconomic conditions to ensure the long-term competitiveness and profitability of Thai businesses.