Economy
Thai Bank Lending Rebounds in Q2 2026
Thai commercial bank loans grew by 1.93% in the second quarter of 2026, driven by large corporate and government borrowing, though small business sectors remain fragile.
According to data from the Kasikorn Research Center, Thai commercial bank lending reached 13.95 trillion baht by the end of the second quarter of 2026. This represents a 1.93% year-on-year growth, marking a recovery from the 0.26% contraction observed in the first quarter.
This growth was primarily fueled by increased demand for liquidity from large corporations and the public sector, partly in response to geopolitical uncertainties in the Middle East. Conversely, lending to small and medium-sized enterprises (SMEs) and retail customers continues to show a slow recovery. Total deposits also rose to 16.64 trillion baht, a 3.11% increase compared to the previous year.
For residents and those doing business in Thailand, this data suggests a stabilizing banking sector, though the Kasikorn Research Center warns that financial institutions remain cautious regarding asset quality. The ongoing challenge lies in managing non-performing loans amidst a broader economic landscape affected by persistent geopolitical tensions. While the center projects slight positive growth for the year, the fragility of the SME sector remains a key factor to monitor. It remains to be confirmed how these lending trends will impact interest rates and credit accessibility for individual consumers in the coming months.