First industry uptick in 2 years
The central bank says small business and consumer loans continued to shrink during the first quarter.
Total lending in the banking industry in the first quarter grew for the first time in two years, driven by working capital loans aimed at helping customers manage rising costs.Total loans for banks posted marginal growth of 0.2% year-on-year for the period, the first growth in two years.
The expansion was mainly driven by working capital lending, as banks supported customers with additional liquidity amid the ongoing energy crisis, said Somchai Lertlarpwasin, assistant governor for financial institutions supervision at the Bank of Thailand.
Rising energy costs stemming from the war in the Middle East led banks to offer additional liquidity to help customers cope with higher operating expenses.
