SCB Suggests National Asset Management Company to Tackle Rising NPLs
Siam Commercial Bank's research arm recommends establishing a national asset management company to tackle rising non-performing loans within Thailand's banking sector. This entity would help manage bad assets and aid vulnerable borrowers amid growing household debt and economic risks. The proposal is supported by experts, emphasizing the need for public-private collaboration and regulatory adjustments.
Siam Commercial Bank's research arm, SCB EIC, recommends the establishment of a national asset management company (AMC) to address the increasing non-performing loans (NPLs) within Thailand's banking sector.
Chief economist Somprawin Manprasert highlighted that Thailand's household debt levels and rising NPLs post-pandemic necessitate a national AMC to help banks manage bad assets effectively and support vulnerable borrowers.
The current NPL rise recalls the 1997 financial crisis when the Thai Asset Management Corporation (TAMC) was created to stabilize the financial system.
However, today's debt issue is more complex, involving individual household debts rather than corporate debts.
Bundit Anantamongkol, CEO of Bangkok Commercial Asset Management, supports the idea, citing the need for public-private collaboration and regulatory changes to make a national AMC effective.
Chief economist Somprawin Manprasert highlighted that Thailand's household debt levels and rising NPLs post-pandemic necessitate a national AMC to help banks manage bad assets effectively and support vulnerable borrowers.
The current NPL rise recalls the 1997 financial crisis when the Thai Asset Management Corporation (TAMC) was created to stabilize the financial system.
However, today's debt issue is more complex, involving individual household debts rather than corporate debts.
Bundit Anantamongkol, CEO of Bangkok Commercial Asset Management, supports the idea, citing the need for public-private collaboration and regulatory changes to make a national AMC effective.
