Thailand’s SME Credit Squeeze Intensifies
- Thailand’s SME lending has contracted for 16 consecutive quarters, highlighting a widening credit access gap. - Only 30% of SMEs obtain bank credit; 40% mix bank and informal borrowing, while 20–23% still rely on loan sharks. - SME NPLs rose by THB104b (THB52b new, THB52b re-entries), prompting BOT concern over asset quality and liquidity. - BOT launched support measures, including a THB20b SME Credit Boost that compensates banks 15–30% on loans turning NPL, with seven-year protection.
