Economy
Bank of Thailand Monitors SME Loan Contraction
SME lending in Thailand has declined for 16 consecutive quarters, prompting the central bank to prepare potential support measures.
According to a report by Prachachat Business, the Bank of Thailand (BOT) has observed a 4.6% contraction in SME loans during the second quarter of 2026. This marks the 16th consecutive quarter of decline for small and medium-sized enterprises, contrasting sharply with a 6.6% growth in loans for large corporations.
Despite the overall downward trend, the BOT noted that some SME segments are beginning to show an increased demand for working capital, raising hopes for a potential recovery in lending during the third quarter. However, the central bank remains cautious, closely monitoring 'fragile debt' levels within the sector. Officials are currently preparing supplementary measures to provide support should the economic situation for these businesses deteriorate further.
For residents and business owners in Thailand, this trend highlights a persistent disparity in credit access between large firms and smaller local businesses. While this does not directly impact daily tourism, it serves as an indicator of the broader economic climate for local service providers and small-scale entrepreneurs. It remains to be confirmed which specific support measures the BOT will implement and whether the observed demand for working capital will translate into sustained growth for the SME sector in the coming months.