SME Development Bank of Thailand (SME D Bank) has extended 40.9 billion baht in loans during the first half of the year, up 12.4% year-on-year.The uptick contrasts with the overall small and medium-sized enterprise (SME) lending portfolio of Thailand's commercial banking sector, which contracted by 2.3% over the same period.
Bank president Pichit Mitrawong said despite a challenging economic environment, including volatile energy prices, persistently high business costs, natural disasters and ongoing geopolitical conflicts, SME D Bank continued to improve SMEs' access to financing.
Most of the loans were extended to small businesses, with loan amounts of up to 15 million baht per borrower.
These loans generated 187 billion baht in economic activity and helped preserve 544,593 jobs, he said. The bank's outstanding loan portfolio totalled 101 billion baht, up 4.48% year-on-year.
Mr Pichit said while commercial banks' SME lending contracted during the first half of the year in line with the economic slowdown, SME D Bank was able to expand its lending because of its policy of providing liquidity support to SME entrepreneurs in accordance with government policy.
