New non-performing loans (NPLs) in the banking sector declined in the first quarter this year as banks became more cautious in extending credit, while re-entry NPLs continued to rise, driven by vulnerable borrower segments, according to the Bank of Thailand.
Somchai Lertlarpwasin, assistant governor for the financial institutions supervision group at the central bank, said last week the volume of new NPLs slowed across all loan portfolios in the first quarter year-on-year. The slowdown was attributed to continued debt assistance measures by banks, including debt restructuring, particularly preventative restructuring efforts.
