Thai Bank Credit Rebounds in Q2, Surpasses 13.9 Trillion Baht
Thai bank credit grew 1.93 percent to 13.95 trillion baht in Q2 2025, rebounding from contraction in the prior quarter, though non-performing loans and weak small business lending remain challenges.
Kasikornbank Research Center reports that overall bank credit in the second quarter of 2025 expanded by 1.93 percent, approaching 14 trillion baht, though non-performing loans and fragile small business lending remain major concerns. Analysis of credit and deposit data from 17 commercial banks at the end of June 2025 shows net credit and accrued interest standing at 13.95 trillion baht, up 1.93 percent year-on-year from a 0.26 percent contraction in the first quarter.
The expansion was driven by increases in government credit and large corporate lending, partly reflecting liquidity demands amid Middle East uncertainties, while SME and retail credit continued a slow recovery. The research center projects modest positive credit growth for 2025, but identifies asset quality management as the critical priority for financial institutions, given Thailand's ongoing exposure to multiple economic challenges, particularly geopolitical tensions that show no signs of near-term resolution.
Deposit growth accelerated to 3.11 percent year-on-year in the second quarter, reaching 16.64 trillion baht, compared to 2.47 percent growth in the first quarter, driven mainly by increases in savings and current account deposits. Fixed-rate deposits declined in line with falling interest rates, and while banks launched limited new deposit campaigns in June—mostly to retain existing customers—financial institutions continue to manage deposit costs carefully as overall liquidity remains elevated and credit recovery remains limited.
