Corporate loans are expected to be the key contributor to lending growth in the banking sector in 2023 thanks to improving demand from businesses and the strong financial condition of large companies.
Kasikorn Research Center (K-Research) forecasts total banking sector loan growth for 2023 to be around 4.7%, a dip from the 2022 projection of 5%, on the back of the country's uneven economic recovery, swelling household debt, and 2023's expected global economic slowdown.
The total loan growth of the banking industry in 2023 will be mainly fuelled by commercial lending, especially large corporate customers, whose financial status remains strong. Therefore, the research house projects 4% growth in 2023 commercial loans, up from an estimated 2% in 2022. Retail loan growth is expected to be at 4.2% in 2023, the same as the projected 2022 growth rate.
