Economics
Thailand's Bad Loan Ratio Is Worse Than China's
- Fitch says nonperforming loans may peak around end of 2017
- Bank sector challenges have sapped Thai stock market outlook
The Sathorn district of Bangkok, Thailand, on Jan. 30.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
Nonperforming loans at Thailand’s banks are set to peak toward the end of 2017, according to Fitch Ratings, an outlook that may salve investor sentiment in one of Asia’s worst-performing stock markets this year.
Thai economic growth is subdued but relatively stable at about 3 percent, signaling a slower expansion in bad loans in the months ahead and an eventual peak by year’s end or just after, said Parson Singha, senior director for financial institutions at Fitch Ratings in Bangkok.