Thailand’s banking system is showing resilience in 2025, despite slowing economic growth and high household debt burdens (~90% of GDP).
The economy is recovering thanks to tourism and domestic demand, but lending activity remains subdued.

Key NPL Indicators

• NPL Rate: 2.84% (2025)
• NPL Volume: ~536 billion baht
• Stage 2 Loans: ~7.07%
• NPL Peak: ~3.1% (2020)
• Household Debt: ~90% of GDP

 

NPL Dynamics

2018 — 3.08%
2020 — 3.1%
2023 — 2.31%
2025 — 2.84%

Structure of Problem Assets

• Main Risk: SME and Consumer Lending
• High Share of Restructured Loans
• Significant “Hidden Risk” through Stage 2

 

Institutional Model

Thailand uses a hybrid model:

• AMCs (Asset Management Companies)
• Government Support Measures
• Restructuring Programs
• Limited Development of the Secondary Market

 

Key Risks

• High household debt burden
• Weak SMEs
• Slowing lending (-1.1% in 2025)
• Growth of Stage 2 assets

 

Conclusion

Thailand is an example of a controlled but “latently tense” NPL market:

• Low official NPLs
• High potential risk
• Focus on restructuring

Model: “soft resolution”

Previously published information