The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Thai banks still stuck in NPL gridlock

The traffic may have eased a little in Bangkok since the crash, but there is still gridlock in Thailand's banking system.


The banks are stuck with a mountain of non-performing loans they would dearly love to offload, and there are plenty of buyers prepared to snap up bargains at attractive discounts.


The problem, as ever, is price.


DBS Thai Danu Bank recently offloaded distressed assets with a nominal value of Bt31 billion ($756 million), selling them for a mere Bt8 billion - a 74% discount to face value. The deal was heralded by Bangkok analysts as a useful benchmark to the real state of the industry's NPLs, on which the Bank of Thailand's detailed statistics have been plentiful but increasingly meaningless, as notional restructurings and off-balance sheet manoeuvrings bring headline figures down, while underlying problems remain. NPLs were forecast by the government to fall below 20% by the year-end, against 31% at the end of August.


"The NPL Figures published are just an accounting facade.





Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree