Thai loan growth to continue in Q3

Banks and non-bank institutions will continue to experience loan growth in the third, to a June survey by the Bank of Thailand.

The survey covered 21 banks and 18 non-bank institutions which control 76.2 per cent of the loan market.

The respondents forecast the continued rise in business loan demand in all sectors, from large-sized enterprises to small and medium-sized enterprises, in line with the surge in domestic demand.

The institutions said that their credit criteria have remained unchanged from the second quarter, except for the long-maturity term loan which comes with slightly tighter conditions. The institutions also viewed that export-oriented clients would be closely monitored, in light of greater uncertainties.

The institutions also expect an increase in loan demand from households. Meanwhile, non-performing loans could also advance slightly.

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