Bangkok--2 Dec--Fitch Ratings
Thai banks' buffers remain acceptable, but the banks continue to face pressure on earnings and asset quality from a weak operating environment, says Fitch Ratings in a special report.
Key financial ratios at Thai banks, such as for capitalisation and reserve coverage, have been supported by recent sound financial performance. These buffers provide banks with the capacity to cope with a normal economic downturn.
However, there also remain potential downside risks due to the build-up of leverage in the Thai domestic economy, which makes the private sector and households more vulnerable in the event of a protracted and worse-than-expected downturn. There are also still possible risks to banks' asset quality from past periods of high credit growth.
The report "2015 Outlook: Thai Banks " is available at www.fitchratings.com or by clicking on the link in this media release.