Thai Bank Lending Up Five Months, Hits 13 Trillion Baht
Thai commercial banks' lending grew for the fifth straight month, pushing total loans to 13.96 trillion baht, driven mainly by large‑corporate borrowing as bond costs rose. SME and retail lending stayed weak, with banks keeping credit standards tight and borrowers cautious amid a fragile economy. Deposits rose to 16.78 trillion baht, supported by savings accounts, while banks slowed special fixed‑deposit campaigns and cut rates.
Bank lending has risen for five straight months, driving the total to 13 trillion baht, while SME lending remains weak. Kasikorn Research Center reported that net loans and interest receivable for Thailand's 17 commercial banks reached 13.96 trillion baht at the end of August 2026, up 3.43% from a year earlier, accelerating from July's 2.79% increase and marking five consecutive months of growth. The expansion was mainly driven by large‑corporate loans, as some businesses shifted to bank financing amid higher bond‑issuance costs. In contrast, SME and retail lending showed only limited recovery, with banks maintaining tight credit standards and borrowers cautious about taking on new debt given the still‑fragile economy and incomplete income recovery. Deposits totaled 16.78 trillion baht, up 3.70% year‑on‑year, up from July's 3.22%, buoyed primarily by savings accounts, while special fixed‑deposit promotions in August slowed, with fewer new offers than before and fewer than those maturing, and banks lowered interest rates on new campaigns, indicating they are not aggressively seeking deposits despite the resumption of loan growth. Overall, the picture shows lending reviving among big firms while SMEs and households remain wary of borrowing amid an economy that has not fully recovered.
