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Financial Market & Institutions Analysis

25 Sep 2020

Financial Markets

The Baht weakened while the SET fell on negative factors both at home and abroad

The Baht pared losses somewhat, after having hit an almost 2-month low of THB31.67/USD. The Baht weakened along with falling risky assets and other regional currencies. Its sentiment was also weighed down by domestic political factors. Meanwhile, the US dollar rose on concerns about the global econo... Read more

18 Sep 2020

Financial Markets

The Baht strengthened while the SET fluctuated but remained positive over-week

The Baht strengthened further in line with the Yuan and other regional currencies, supported by news regarding the development of COVID-19 vaccines. Meanwhile, the US dollar faced sell-offs after the Fed signaled an easing monetary policy stance and vowed to keep low interest rates for a longer peri... Read more

11 Sep 2020

Financial Institutions

Understanding THOR … New Thai Reference Rate (Business Brief No.3883)

Preparedness for a new context in the financial world resulting from permanent cessation of the London Interbank Offer Rate (LIBOR) as an interest rate benchmark for financial transactions is an important mission of financial regulatory authorities in many countries. For Thailand, the Bank of Thaila... Read more

11 Sep 2020

Financial Markets

The Baht moved in a tight range while the SET dropped on negative factors

The Baht traded in a narrow range, but rose slightly against the US dollar. The Baht edged up early in the week in line with net foreign bond buying orders, as well as other Asian currencies, including the Yuan. Meanwhile, the US dollar faced sell-offs especially against the EUR after the ECB kept i... Read more

3 Sep 2020

Financial Markets

The Baht fell, while the SET dropped on profit-taking before long holidays

The Baht weakened against the US dollar. It hit a 1-week low of THB31.45/USD before long holidays. The Baht fell along with net foreign stock selling orders, while the US dollar rose on stronger-than-expected US ISM and PMI manufacturing surveys. The Baht sentiment was also weighed down by concerns ... Read more

1 Sep 2020

Financial Institutions

Contactless payment: the push for continuous growth in mobile banking and e-wallet use amid fierce competition (Current Issue No.3131)

KResearch views that the ongoing COVID-19 pandemic is an important catalyst in transforming the way Thai consumers conduct funds transfer and pay for goods and services. Such trends have given rise to the “New Normal” which is geared towards making money transfers and purchases that do not require p... Read more

28 Aug 2020

Financial Markets

The Baht strengthened, while the SET also rose on institutional investor purchases

The Baht strengthened along with other regional currencies, including the Yuan, following positive signals seen in the US-China Phase 1 trade deal review and technically buying-orders during the week. The Baht extended gains later in the week and hit a 1-week high of THB31.16/USD, while the US dolla... Read more

21 Aug 2020

Financial Markets

The Baht hit a 3-week low while the SET dropped over-week

The Baht weakened against the US dollar. The baht briefly rose early in the week, as the US dollar fell along with US bond yields on the back of disappointing US economic data. However, the Baht tumbled later in the week amid concerns about domestic factors, including the political and COVID-19 situ... Read more

14 Aug 2020

Financial Markets

The Baht pared gains while the SET dropped at the end of the week before weekend

The Baht rose slightly, while the US dollar dropped on US-China tensions before the scheduled meeting to discuss about the progress of Phase 1 trade deal. The US dollar also faced sell-offs amid concerns about the US new stimulus measures due to different stances between the White House and Congress... Read more

7 Aug 2020

Financial Markets

The Baht and the SET fell at the end of the week amid US-China tensions

The Baht fell later in the week, after having risen in early to mid week along with other regional currencies. In addition, the Baht was partially supported by the rising global gold prices. It broke the THB31.00/USD to hit a new 1-month high of THB30.98/USD. However, the baht pared gains somewhat l... Read more

23 Jul 2020

Financial Institutions

Growth opportunities for digital lending market remain dependent on access to data and investment in digital technology (Current Issue No.3125)

KResearch assesses that, as of 2020, digital lending service in Thailand is still in its infancy and modest in scale as digital lenders lack sufficient customer data for risk profile assessment. Therefore, digital lending service during this initial period is seen mainly as an alternative for existi... Read more

20 Jul 2020

Financial Institutions

Projected Bank Operating Performace, 2Q20: Profit Set to Decline Despite Loan Growth Resulting from Assistance Measures for Businesses (Business Brief No.3876)

Persistent weakness seen in the Thai economy as a result of the coronavirus (COVID-19) pandemic since early 2020 has substantially hurt the profitability of commercial banks during 2Q20. The highly volatile economic cycle at this time has pressured income of commercial banks’ core businesses and in ... Read more

17 Jul 2020

Financial Markets

The Baht weakened while the SET surged at the end of the week on foreign investors’ purchase

The Baht weakened to a 1-1/2 month low last week. The Baht depreciated continuously amid domestic pressures, including concerns over the risk of a second wave of COVID-19 in Thailand and domestic political issues. In addition, the Baht was pressured by technical factors after the Baht broke the key ... Read more

10 Jul 2020

Financial Markets

The Baht weakened while the SET dropped on concerns over the global COVID-19 situation

The Baht weakened to a 1-month low last week. The Baht depreciated amid the US dollar buying orders after the Baht broke the key THB31.15/USD level early in the week. In addition, mounting concerns over the impact of worsening COVID-19 situation, especially in the US, on the global recovery supporte... Read more

7 Jul 2020

Financial Institutions

Household debt increases amid immediate challenges in issuing relief measures to combat the COVID-19 crisis (Business Brief No.3874)

According to the latest information, Thailand’s outstanding household debt in 1Q20 fell by THB 3.56 billion compared to the previous quarter – down to THB 13.47 trillion, the first such drop in four and a half years, and close to the outstanding household debt of THB 13.48 trillion in late 2019; due... Read more

3 Jul 2020

Financial Markets

The Baht weakened while the SET pared gains somewhat at the end of the week due to mounting risk of second wave of COVID-19 in US

The Baht traded at the weaker side of THB31.00/USD in line with some other regional currencies. The Baht also fell after the Bank of Thailand signaled that a stronger Baht could have negative impacts on Thailand’s economy, while related officials have considered needed measures to help stabilize the... Read more

26 Jun 2020

Financial Markets

The Baht rose slightly while the SET dropped amid concerns over the economic impact of COVID-19

The Baht rose in line with other regional currencies amid easing lockdown measures. The Asian currencies were also supported by an assurance that the phase one US-China trade deal is still intact. The Baht rose slightly after the BOT’s MPC kept its policy rate unchanged at 0.50%. However, the Baht’s... Read more

22 Jun 2020

Financial Institutions

Phase II guidelines to assisting retail customers Emphasis on interest rate cuts and debt restructuring may put more pressure on operating performance (Business Brief No.3872)

The Bank of Thailand (BOT) is forging ahead with its Phase II package of relief measures for small borrowers, which will emphasize relieving the financial burden of retail debtors by lowering the interest rate ceiling on credit cards and personal loans, as well as cutting the interest rate for refin... Read more

22 Jun 2020

Financial Institutions

MPC Meeting of June 24, 2020: Policy rate likely on hold at 0.5% to gauge effectiveness of previous measures (Business Brief No.3871)

Regarding the Monetary Policy Committee (MPC) Meeting on June 24, 2020, KResearch has assessed that the committee will consider putting the policy rate on hold at 0.50 percent as it waits to gauge the effectiveness of the monetary and fiscal measures that were previously issued. These measures inclu... Read more

19 Jun 2020

Financial Markets

The Baht traded in a narrow range while the SET dropped over-week

The Baht traded in a narrow range against the US dollar. The Baht weakened early to mid-week along with other regional currencies, as the US dollar gained as a safe-haven currency amid worries about a second wave of the COVID-19 pandemic, especially in the US and China. The US dollar was also suppor... Read more

12 Jun 2020

Financial Markets

The Baht hit an over 4-month high while the SET dropped on concerns over a second wave of COVID-19 in US

The Baht broke the THB31.00/USD level to hit an over 4-month high of THB30.83/USD. The Baht rose early in the week in line with net foreign bond purchases, US dollar sales coming from exporters, as well as technical US dollar selling orders. In addition, the US dollar faced sell-offs after the Fed s... Read more

5 Jun 2020

Financial Markets

The Baht hit an over 2-1/2 month high while the SET closed above 1,400 points supported by foreign investors’ net buying

The Baht hit the strongest level in 2-1/2 months, as the currency traded near THB31.45/USD. The Baht rose along with other regional currencies, as well as net foreign Thai stock and bond buying orders. The Baht gained, although the Bank of Thailand (BOT) has signaled to closely monitor the Bath’s mo... Read more

4 Jun 2020

Financial Institutions

Baht Strengthens on Gold Exports and Repatriation of Funds to Thailand (Business Brief No.3869)

In April 2020, many countries around the world, including Thailand, began to implement lockdown measures to combat the coronavirus (COVID-19) pandemic. This has resulted in economic stagnation. At the same time, foreign investors became net sellers of Thai stocks and bonds. Meanwhile, the Baht has g... Read more

29 May 2020

Financial Institutions

How Will Commercial Banks Adjust to the “New Normal” Era? (Current Issue No.3115)

The coronavirus (COVID-19) pandemic has altered the business environment of commercial banks in two ways: 1) The speed of disruption has become faster; and, 2) There has been a “New Normal” environment in the commercial banking business. Such changes have inevitably affected business model of commer... Read more

29 May 2020

Financial Markets

The Baht edged up along with the SET on reopening of economies

The Baht gradually rose after having fallen early in the week on sell-offs of Thai stocks and bonds by foreign investors. Meanwhile, the US dollar was supported by its safe haven appeal amid rising tensions between the US-China. The Baht rebounded later in line with other regional currencies on hope... Read more

25 May 2020

Financial Institutions

Policy Rate Cut Pressures NIM Amid Numerous Assistance Measures for Customers (Business Brief No.3867)

The Monetary Policy Committee’s decision to trim its policy rate on May 20, 2020 has prompted commercial banks in Thailand to cut their interest rates once again a few days after that. Large commercial banks have concurrently announced to reduce their minimum loan rates (MLR), minimum retail rates (... Read more

22 May 2020

Financial Markets

The Baht rose, but the SET dropped at the end of the week on US-China tensions

The Baht gradually strengthened, but pared gains somewhat at the end of the week. The Baht rose early in the week in line with the recovery of risky assets on hopes for the COVID-19 vaccine, which supported other regional currencies, as well. In addition, the sell-offs of US dollar by exporters and ... Read more

18 May 2020

Financial Institutions

MPC meeting on May 20 expect to adjust interest rate downward and maintain interest rate t 0.5 percent for the remainder of 2020 (Business Brief No.3865)

KResearch expects the Monetary Policy Committee (MPC) to consider adjusting interest rate downward by 0.25 percent from the current level of 0.75 percent to 0.50 percent, amid this risk-prone economic environment. The Thai economy has been significantly affected by the outbreak of COVID-19, as it ex... Read more

15 May 2020

Financial Markets

The Baht extended gains, while the SET rose on the gradual reopening of economies.

The Baht rose against the US dollar, and hit a 2-month high of THB32.02/USD around mid-week. The Baht rose amid net foreign bond buying orders and signs for reopening economic activities in many countries. Meanwhile, the US dollar fell on a disappointing US April CPI data, posting the biggest drop i... Read more

8 May 2020

Financial Markets

The Baht rose while the SET recovered somewhat at the end of the week

The Baht rose to a 1-1/2 month high against the US dollar. The Baht edged down early in the week in line with net foreign stock and bond selling orders, while the US dollar rose as a safe-currency on worries about the global economic recession. However, the Baht rebounded strongly later in the week,... Read more

24 Apr 2020

Financial Markets

The Baht and the SET rose over-week, despite paring some gains before the weekend

The Baht rose slightly before paring gains somewhat later in the week. The Baht strengthened during early- to mid-week amid US dollar-selling orders from exporters, and net foreign bond buying orders. The Baht and other regional currencies also gained along with other risky assets, led by oil prices... Read more

17 Apr 2020

Financial Markets

The Baht rose while the SET rebounded somewhat at the end of the week

The Baht traded in a narrow range but rose slightly later in the week. The Baht weakened earlier in the week amid concerns about the impacts of COVID-19 on the global economy, including that of Thailand. However, the Baht recovered later in the week on USD-selling orders from exporters, while the US... Read more

10 Apr 2020

Financial Markets

The Baht strengthened while the SET rose on economic stimulus package

The Baht rose against the US dollar. The Baht gained early in the week along with other Asian risky assets on the back of hopes that the COVID-19 outbreak would lessen in many countries. Meanwhile, the US dollar faced sell-offs later in the week, after the Fed unveiled new relief measures worth USD2... Read more

8 Apr 2020

Financial Institutions

BOT issues relief measures to support private sector in the fight against COVID-19 (Business Brief No.3859)

On 7 April 2020, the Bank of Thailand (BOT) issued additional measures to assist the private sector in combating the COVID-19 which primarily concern short-term liquidity boosting measures offered to small to medium enterprises (SMEs) that have been affected by the spread of the COVID-19 virus – a g... Read more

3 Apr 2020

Financial Markets

The Baht weakened while the SET rose slightly at the end of the week led by energy shares

The Baht weakened against the US dollar. The Baht was pressured by concerns over the economic impacts of COVID-19 worldwide, including Thailand, as well as net foreign stock and bond selling orders. In addition, the Baht fell along with other regional currencies. However, the Baht pared losses somew... Read more

27 Mar 2020

Financial Markets

The Baht rose while the SET recovered somewhat on COVID-19 relief packages.

The Baht recovered, after having briefly weakened to THB33.00/USD amid concerns over negative impacts of the COVID-19 outbreak in Thailand, and net foreign fund outflows. The Baht, however, rebounded later in the week, as the US dollar tumbled on the Fed’s announcement on the unlimited QE measures. ... Read more

24 Mar 2020

Financial Institutions

COVID-19 Revives Retail Insurance Market via Digital Channel…2020 Core Business Bracing for Complex Challenges (Business Brief No.3857)

The unfolding COVID-19 pandemic has created a new record for the Thai retail insurance market with the total sales of insurance policies projected to reach more than 1 million in March 2020 alone. If so, the total sales of insurance policies overall in 2020 may top roughly 2-3 million, representing ... Read more

20 Mar 2020

Financial Markets

The Baht weakened while the SET recovered at the end of the week

The Baht continued to weaken against the US dollar. The Baht fell along with net foreign stock and bond buying orders, as well as concerns about the Thai economic outlook due to the COVID-19 outbreak. The Baht hit a 15-month low of THB32.74/USD before rebounding somewhat later in the week, after sev... Read more

13 Mar 2020

Financial Markets

The Baht weakened while a trading circuit breaker was triggered twice during the week as the SET fell sharply

The Baht weakened against the US dollar. The Baht fell while the global and Thai financial markets were highly volatile amid rising concerns towards the WHO’s announcement that the COVID-19 outbreak entered the pandemic phase. The Baht was also pressured by weak regional currencies, and net foreign ... Read more

6 Mar 2020

Financial Markets

The Baht rebounded but the SET fell at the end of the week on COVID-19 outbreak concerns

The Baht moved in the tight range throughout the week, although it strengthened at the end of the week. The Baht was under pressure (in line with other regional currencies) from concerns over the economic impact of the COVID-19 outbreak, while net foreign selling orders for Thai stocks and bonds dur... Read more

28 Feb 2020

Financial Markets

The Baht rebounded later in the week, while the SET fell sharply on COVID-19 outbreak

The Baht rebounded later in the week, having recouped losses during early to mid-week, after the Baht weakened in line with other regional currencies amid growing concerns about the COVID-19 outbreak outside of China. The Baht also fell on net foreign selling orders for Thai stocks and bonds. The Ba... Read more

21 Feb 2020

Financial Markets

The Baht weakened, while the SET fell below 1,500 points again

The Baht weakened along with the Yuan and other regional currencies amid concerns about the COVID-19 outbreak situation, after there was an increase in COVID-19 infections outside China. In addition, the Baht fell on technical selling orders, after it broke the THB31.50/USD level. Signs of a weak ec... Read more

14 Feb 2020

Financial Markets

The Baht edged up, while the SET dropped on lingering concerns over COVID-19

The Baht rose slightly against the US dollar. The Baht was supported by net foreign buying orders for Thai bonds and strong regional currencies earlier in the week after a report showed that the rate of Coronavirus (COVID-19) infections slowed somewhat. However, news that there was a surge in COVID-... Read more

7 Feb 2020

Financial Markets

The Baht weakened, while the SET rose over 1,500 points again.

The Baht weakened later in the week. The Baht rose slightly early in the week due to position adjustments before the BOT’s MPC meeting. However, the Baht dropped later during the rest of the week after the BOT decided to cut its policy rate to 1.00%, while the BOT governor said that although the Bah... Read more

31 Jan 2020

Financial Markets

The Baht weakened, while the SET dropped on the continued spread of coronavirus

The Baht weakened in line with other regional currencies amid concerns over the economic impact of the novel coronavirus outbreak. In addition, the Baht was weighed down by net foreign stock selling during the week, and domestic US dollar demand at the month-end. ... Read more

24 Jan 2020

Financial Markets

The Baht weakened, while the SET dropped on fears of coronavirus outbreak.

The Baht fell against the US dollar. The Baht rose early in the week along with regional currencies amid profit-taking on the US dollar’s gains fueled by strong US economic reports released before. However, the Baht reversed those gains and fell in line with Asian peers, led by the Yuan, on the back... Read more

22 Jan 2020

Financial Institutions

Relaxation of LTV Regulations to Bolster Residential Market Amid Numerous Risks (Current Issue No.3075)

The reduction in home ownership transfer fee in early 2020 and the Bank of Thailand’s decision to relax its loan-to-value (LTV) regulations for first-and second-time home buyers on January 20, 2020, with the aim of promoting home ownership and increasing consumer house-buying power, will likely give... Read more

17 Jan 2020

Financial Institutions

Household debt in 2020 may exceed 80% of GDP: closely monitor debt service ability of Thai household groups (Current Issue No.3073)

Thailand’s household debt continued to surge amid the slowing economy as the size of the household debt relative to GDP rose to 79.1 percent in 3Q19, the highest in almost three years. The high level of household debt nationwide is consistent with KResearch’s survey on household debt and savings in ... Read more

15 Jan 2020

Financial Institutions

Adjustment of Calculation Method for Loan Default Penalties Will Create New Standard, But Banks’ Income May be Affected in 2020 (Business Brief No.3843)

The Bank of Thailand recently revealed details on the improvements of calculation methods for interests and service charges, with the aim of protecting consumers in three areas. These include: 1) prepayment penalties for SME and personal loans; 2) default interests that must be based on outstanding ... Read more

10 Jan 2020

Financial Markets

The Baht and the SET rebounded as Middle East tensions faded

The Baht rebounded later in the week. The Baht moved within a tight range early in the week before hitting a 1-month low of THB30.37/USD in line with weak regional currencies amid concerns over rising tensions in the Middle East, as Iran attacked US troops in Iraq in response to US airstrike on Janu... Read more

3 Jan 2020

Financial Markets

The Baht reversed gains and weakened, the SET rose on the first week of 2020.

The Baht reversed gains and weakened against the US dollar in the first two trading days of the year, but it continued to be traded in a narrow range. The BOT signaled to closely monitor its movement after the Baht broke the THB30.00/USD level to hit a 6-1/2 year high of THB29.75/USD amid thin tradi... Read more

27 Dec 2019

Financial Markets

“The Baht strengthened, while the SET rose on year-end LTF and RMF purchases”

The Baht rose to test THB30.15/USD amid the US dollar’s sell-offs on the back of weaker-than-expected US durable goods and new home sales data. However, the Baht’s weekly movement was tight due to thin trading volume before the year-end holidays. ... Read more

25 Dec 2019

Financial Institutions

Net Loans Increased Slightly in November 2019 Despite Loan Drawdown Season (Business Brief No.3841)

According to the statements of assets and liability (C.B. 1.1) of 14 Thai commercial banks as of the end of November 2019, net loans increased only slightly despite the loan drawdown season. The marginal rise in net loans was due to the negative factors stemming from loan repayment by the business s... Read more

20 Dec 2019

Financial Markets

The Baht stayed within a tight range, while the SET closed near last week’s level. Foreign Exchange Market

The Baht rose to test the THB30.15/USD. The Baht strengthened on the back of strong regional currencies, led by the Yuan amid news reports that the US and China were close to finalize the first phase of a trade deal. The US dollar faced sell-offs after the Fed signaled that it would not raise its p... Read more

17 Dec 2019

Financial Institutions

MPC Meeting, December 18, 2019: Policy Rate Likely Unchanged Pending Domestic Economic Assessment (Business Brief No.3838)

We at KResearch expect that the Bank of Thailand’s Monetary Policy Committee (MPC) will likely keep its policy rate steady at 1.25 percent during the final meeting of 2019 slated for December 18, 2019 pending a domestic economic assessment going forward. ... Read more

13 Dec 2019

Financial Markets

The Baht rebounded strongly, while the SET rose on hopes of US-China trade deal.

The Baht rose to test the THB30.15/USD. The Baht strengthened on the back of strong regional currencies, led by the Yuan amid news reports that the US and China were close to finalize the first phase of a trade deal. The US dollar faced sell-offs after the Fed signaled that it would not raise its p... Read more

6 Dec 2019

Financial Markets

The Baht weakened, while the SET dropped to close at an 11-month low.

The Baht weakened against the US dollar. The Baht faced sell-offs early in the week in line with falling safe-haven currencies and assets, triggered by stronger-than-expected Chinese PMI data. The Baht fell further later in the week to a 1-month low of THB30.38/USD, after the BOT signaled to closely... Read more

29 Nov 2019

Financial Markets

The Baht traded in a narrow range, while the SET dropped to close at a 10-month low.

The Baht traded in a narrow range almost all trading days of the week. The Baht fell early in the week after both the US and Chinese Presidents signaled a possible trade deal between the two countries. The US dollar also gained on stronger-than-expected 3Q-2019 GDP and October durable goods orders d... Read more

25 Nov 2019

Financial Institutions

Net loans in October 2019 drop at almost all banks due to debt repayment by corporate sector (Business Brief No.3835)

Net loans in October 2019 decreased from the previous month by 87.7 billion Baht amid the pressure on loans at almost all banks, especially from debt repayment by the corporate sector, SME business operators and the government. Nonetheless, retail loans, namely, personal loan and other unsecured loa... Read more

22 Nov 2019

Financial Markets

The Baht traded in a narrow range, while the SET recovered somewhat at the end of the week

The Baht traded in a narrow range. The Baht fell early in the week on the back of positive developments for the first phase of the US-China trade deal. However, the Baht rebounded and traded in a tight range later in the week after the US President Donald Trump threatened to raise tariffs on importe... Read more

19 Nov 2019

Financial Institutions

Digital-only banks without branches for the new age, new business model that needs to be proven in Thai society (Business Brief No.3833)

Digital-only banking is a banking business in the modern age that can be categorized into two types based on business models, which aim at different groups of customers: First, digital-only banks which focus on servicing low to medium income earners who face certain limitations in accessing financi... Read more

15 Nov 2019

Financial Markets

The Baht rose while the SET dropped on uncertainty over US-China trade deal.

The Baht strengthened against the US dollar. Regarded as a safe-haven currency, the Baht rose in line with the JPY amid concerns about the US-China trade talks. The US President Donald Trump said earlier in the week that there was no agreement yet to roll back tariffs on imported goods from China, a... Read more

13 Nov 2019

Financial Institutions

Slowing economy and low returns prompt more people to search for yield (Current Issue No.3054)

As the Thai economy has shown signs of slowing, the Monetary Policy Committee (MPC) has decided to cut the policy rate for the second time this year to 1.25 percent per annum during its meeting on November 6, 2019. The central bank’s policy rate cut has been passed on to the interest rate reduction ... Read more

11 Nov 2019

Financial Institutions

Ponzi scheme...and the need to enhance financial literacy to prevent scams (Business Brief No.3831)

When looking back at Thailand’s recent financial history, the search-for-yield behavior has always occurred regardless of how low or high the interest rate was at that given period. At any rate, during the slowing economy, which often comes with a low interest rate environment, people are more likel... Read more

8 Nov 2019

Financial Markets

The Baht hit a 3-week low, while the SET rebounded on hopes of US-China trade deal.

The Baht fell to THB30.43/USD, the weakest level in 3 weeks. The Baht faced hefty sell-offs after the BOT’s MPC decided to cut its policy rate to 1.25% and relaxed rules to facilitate capital outflows and lessen pressure on the Thai baht. Moreover, a weaker Baht was also in line with other safe-have... Read more

7 Nov 2019

Financial Institutions

Thai Baht Weakens Slightly after BOT Relaxes Rules to Stimulate Capital Outflows (Current Issue No.3050)

On November 6, 2019, the Bank of Thailand (BOT) announced the “Relaxation of rules to facilitate capital outflows and lessen pressure on the Thai Baht”, while the Monetary Policy Committee (MPC) resolved to cut its policy rate to 1.25 percent. Their concurrent actions have caused the Baht to weaken ... Read more

1 Nov 2019

Financial Institutions

Signs of a slowing economy continue… prompting the MPC to cut policy rate by 0.25% (Business Brief No.3830)

Signs of a slowing economy in terms of exports, domestic spending and relatively low inflation reflect the vulnerabilities of the Thai economy, while the impact from the lackluster exports has begun seeping into the real economic sector. Although the government recently introduced a series of econom... Read more

1 Nov 2019

Financial Markets

The Baht traded in a narrow range near the THB30.15/USD level, while the SET closed near last week’s level.

The Baht traded in a narrow range near THB30.15/USD, which is the strongest level in over six years. The Baht briefly fell early in the week in line with a weaker JPY, which was seen as a safe-haven currency after the US and China signaled that they were close to finalize some parts of their trade d... Read more

25 Oct 2019

Financial Institutions

Slowing corporate loans curb the rebound of loan growth in September 2019 (Business Brief No.3829)

Net loans of commercial banks in September 2019 expanded within a limited range, due to lackluster signs of overall economic activity. Moreover, some big commercial banks have exercised a cautious approach in approving loans to ensure the quality of loans. Meanwhile, the growth of small and medium s... Read more

25 Oct 2019

Financial Markets

The Baht hit a new 6-year high of THB30.16/USD, while the SET closed below 1,600 points.

The Baht hit a new 6-year high. The Baht rose along with other regional currencies amid foreign investors’ net buying orders for Thai bonds early in the week. Meanwhile, the US dollar fell on weak US economic data, reinforcing expectations that the Fed would cut its benchmark rate further at the FOM... Read more

18 Oct 2019

Financial Markets

The Baht rose to test the THB30.25/USD level, while the SET fluctuated on external factors.

The Baht rose to test the THB30.25/USD level last week. The Baht briefly fell early-to mid-week in line with other regional currencies amid concerns about the slower global growth outlook. However, the Baht rebounded later in the week on the back of the US dollar’s sell-offs due to weak US economic ... Read more

17 Oct 2019

Financial Institutions

Slowing Economy Projected to Pressure Core Business Income of Commercial Banks and Heighten Asset Quality Problem Despite Steady Growth Seen in 3Q19 Profit (Current Issue No.3041)

Although 3Q19 earnings of Thai commercial banks show that the Thai commercial banking system overall has been able to maintain profitability from extraordinary items, cut expenses from setting aside reserves and undertake efficient cost management, KResearch has assessed that the sluggish Thai econo... Read more

16 Oct 2019

Financial Institutions

Upward gold price strengthens Thai Baht...the turning point may be timing of the Fed’s hint at no more rate cuts (Current Issue No.3025)

The continuously strengthening Thai Baht has caused worries among the export-related business sector and the domestic tourism industry. Since the beginning of 2019, the Thai Baht has risen 7.4 percent against the greenback and other key major and regional currencies. The Thai currency has surged in ... Read more

11 Oct 2019

Financial Markets

The Baht hit an over 6-year high, before paring gains somewhat, while the SET closed higher later in the week.

The Baht weakened late last week after hitting an over 6-year high of THB30.25/USD. The Baht rose early in the week as a safe-haven currency amid concerns about conflicts between the US and China over their trade renegotiations, as well as between the EU and UK on the BREXIT issue. However, the Baht... Read more

9 Oct 2019

Financial Institutions

Thai Baht Tested THB30.30/USD, Representing the Strongest in more than Six Years (Current Issue No.3039)

The Baht has appreciated to test THB30.30/USD, representing the strongest in more than six years and Asia’s best-performing currency. The Thai currency has strengthened by approximately 7.4 percent against the greenback, outpacing the Indonesian Rupiah and Philippine Peso, which have appreciated onl... Read more

4 Oct 2019

Financial Markets

The Baht rose as US dollar was pressured by soft US economic data, while the SET dropped on sell-offs of institutional and foreign investors.

The Baht strengthened late last week. The Baht fell early to mid-week on weak regional currencies, and risky assets amid heightened trade war tension, concerns over BREXIT, and an economic slowdown in the US and Eurozone. The Baht also tumbled along with net foreign stock selling orders. The Baht, h... Read more

27 Sep 2019

Financial Markets

The Baht fell to the weaker side of THB30.60/USD, while the SET ended the week higher on Window Dressing.

The Baht fell to the weaker side of THB30.60/USD last week. The Baht weakened on the back of net foreign stock and bond selling orders during the week. Meanwhile, most Asian currencies were weighed down by uncertainties about the global economic outlook, and the UK’s BREXIT solution. The US dollar a... Read more

26 Sep 2019

Financial Institutions

Net loans of commercial banks in August 2019 continue to slow in line with economy (Business Brief No.3822)

Net loans of commercial banks (14 banks) in August 2019 increased only 3.84 percent YoY, the same growth as the rate registered in July 2019, which is the lowest rate in 21 months. Loan outstandings continue to slow in alignment with the overall economic sentiment. In particular, business loans are ... Read more

19 Sep 2019

Financial Institutions

MPC Likely Keep Policy Rate Steady at September 25, 2019 Meeting While Its Monetary Policy Stance Hinges Mainly on Thai Economic Developments (Business Brief No.3819)

We at KResearch expect that the Bank of Thailand (BOT)’s Monetary Policy Committee (MPC) will likely maintain its policy rate at 1.50 percent during the sixth meeting of 2019 slated for September 25, 2019. The fact that 3Q19 economic indicators did not deteriorate from those seen in 2Q19 may give th... Read more

13 Sep 2019

Financial Markets

The Baht hit a 6-year high, while the SET dropped over-week.

The Baht hit a 6-year high of THB30.36/USD in line with movements of the Yuan and other regional currencies amid positive signals of the US-China trade conflicts. The US delayed to raise tariffs on USD250 billion of Chinese imports until October 15 from October 1, while China announced lists of the ... Read more

10 Sep 2019

Financial Institutions

Life insurance business for 2019 continues to slow down in spite of a slight recovery in 2H19 (Current Issue No.3030)

Life insurance premiums received in 1H19 totaled THB295 billion, contracting 6.1 percent YoY. In 2H19, the business is likely to slightly rebound, but the mild recovery is not enough to push the overall business performance for the whole of 2019 back to positive territory. Total life insurance pre... Read more

6 Sep 2019

Financial Markets

The Baht was volatile before weakening late in the week, while the SET rose on eased concerns over external risks.

The Baht was volatile last week. The Baht fell early in the week, along with the Yuan and other regional currencies, amid concerns about the US-China trade dispute. The Baht rebounded later, while the US dollar faced sell-offs after the ISM Manufacturing Index showed a contraction in the US manufact... Read more

30 Aug 2019

Financial Markets

The Baht rose while the SET fluctuated on trade war issues.

The Baht hit an almost 2-month high of THB30.55/USD last week. The Baht rose earlier in the week along with other safe-haven assets after the US and China announced to raise tariffs on each other’s goods, heightening tension over the trade war tension. The Baht fell briefly during the week on US do... Read more

23 Aug 2019

Financial Markets

The Baht rose while the SET fluctuated but closed higher by the end of the week.

The Baht rose against the US dollar. The Baht rose early to mid week, along with other regional currencies while the US dollar faced sell-offs on concerns about the US economic outlook and falling US Treasury bond yields. The Baht extended gains against the US dollar, although foreign investors were... Read more

16 Aug 2019

Financial Institutions

Curbing DSR of Low-Income Earners May Shave Retail Loan Growth by 5% (Current Issue No.3023)

New reports over the past one month may represent signals confirming that the Bank of Thailand (BOT) is in the process of carrying out two important matters to cope with hefty household debt. These include: 1) determining lending guidelines for low-income earners; and 2) preparation to set common le... Read more

16 Aug 2019

Financial Markets

The Baht weakened while the SET fell below 1,600 points before rebounding later in the week

The Baht weakened against the US dollar. The Baht fell along with regional currencies, while the US dollar rose after the US announced to delay imposing tariff on some Chinese imports to December 15. The Baht’s weakness was also in line with net foreign stock and bond selling orders, following sell... Read more

15 Aug 2019

Financial Institutions

Lending rate cuts...generate over THB16 billion in net benefit to economy (Business Brief No.3813)

Within one week after the Bank of Thailand announced a policy rate cut, major Thai commercial banks have followed suit by cutting lending rates for their general customers. These banks have slashed their minimum overdraft rate (MOR) and minimum retail rate (MRR) by 12.5-25 basis points, but are keep... Read more

9 Aug 2019

Financial Markets

The Baht rose while the SET faced pressure from domestic and foreign factors.

The Baht briefly fell after the FOMC meeting. The Baht rose early in the week, as the US dollar fell further on weak US Non-farm Payrolls data and concerns over the US-China trade tensions. The Baht extended its gains later in the week, although it fell briefly after the BOT’s MPC unexpectedly cut i... Read more

7 Aug 2019

Financial Institutions

MPC Cuts Policy Rate for the First time in 4 Years … Its Impact on Economy Warrants Close Monitoring Ahead (Current Issue No.3017)

Thailand’s Monetary Policy Committee (MPC) voted 5-2 to cut the benchmark rate for the first time in four years to 1.50 percent, from 1.75 percent, at its meeting, August 7, 2019. The MPC attributed its move to the weakening signs seen in the export sector and domestic demand, which have caused the ... Read more

5 Aug 2019

Financial Institutions

MPC Gives Weight to Risks to Financial System Stability While Making Economic Assessment (Business Brief No.3812)

KResearch projects that the Monetary Policy Committee (MPC) will keep its policy rate steady at 1.75 percent at the fifth meeting of 2019 slated for August 7, 2019. It is expected that the MPC will attach importance to long-term stability at the upcoming meeting as it is experiencing more challenges... Read more

26 Jul 2019

Financial Markets

The Baht fell while the SET ended the week lower on sell-offs of institutional investors.

The Baht weakened against the US dollar. The Baht fell early to mid week amid expectations that the Fed might not aggressively cut its policy rate in the near future. The Baht’s weakness was also in line with net foreign bond selling orders. Meanwhile, the US dollar rose on the budget deal between t... Read more

25 Jul 2019

Financial Institutions

June Net Loans Increased Only Slightly on Slower Growth in Commercial and Retail Loans (Business Brief No.3810)

Commercial loans and many types of retail loans grew at a slow pace while SME loans did not recovered in June. This caused June net loans overall to increase only THB10.7 billion or 0.09 percent MoM. When compared to the same period of last year, June net loans expanded at the sluggish pace in almos... Read more

19 Jul 2019

Financial Markets

The Baht rebounded while the SET rose on expectation of Fed rate cut.

The Baht rebounded later in the week. The Baht weakened early to mid week, along with net foreign bond selling orders. The Baht later reversed those losses and rebounded amid the weak US dollar sentiment, led by disappointing US economic data, and NY Fed President’s remarks that reinforced expectati... Read more

18 Jul 2019

Financial Institutions

Unfavorable Core Business Income Continues to Inhibit 2Q19 Profit of Commercial Banks (Current Issue No.3008)

We at KResearch project that net profit overall of commercial banks registered in Thailand will reach approximately THB51-52 billion in 2Q19, declining from the THB52.59 billion reported for 1Q19. Operating profit in 2Q10 may recover at a slower pace because income growth from core business of comme... Read more

15 Jul 2019

Financial Institutions

BOT issues measures to monitor short-term capital inflow Reduce channels for parking money to curb rapid gains of Thai Baht (Current Issue No.3007)

The Bank of Thailand (BOT), on July 12, 2019, issued the measures to enhance short-term capital flow surveillance under the measures to prevent Thai Baht speculation formally announced after the central bank had earlier sent signal and expressed concerns over the rapid gains of Thai Baht which had s... Read more

12 Jul 2019

Financial Markets

The Baht weakened after BOT implemented measure to monitor short-term fund inflows, while the SET closed near last week’s level

The Baht fluctuated and fell later in the week after the release of BOT’s new Baht measure. The Baht fell early in the week on the US dollar short-covering orders before the Fed Chairman’s testimony to the US Congress. The Baht, however, rebounded after the Fed Chairman’s comment was seen as a signa... Read more

5 Jul 2019

Financial Markets

The Baht weakened slightly after rising to a new 6-year high, while the SET pared gains on domestic investor sell-offs.

The Baht fell slightly after having hit a 6-year high of THB30.52/USD. The Baht rose on net foreign stock and bond buying orders, while the US dollar fell on weak economic data that reinforced expectations about the Fed policy rate cut. However, the Baht pared those gains later, while the US dollar ... Read more

28 Jun 2019

Financial Markets

The Baht hit a new 6-year high, while the SET rose on foreign investors’ net-buying positions.

The Baht strengthened against the US dollar during the week. The Baht hit a new 6-year high of THB30.62/USD early in the week amid expectations that the Fed might cut its policy rate at its meeting in July. However, the Baht fell on position adjustment around mid-week before bouncing back after the ... Read more

25 Jun 2019

Financial Institutions

Short-term corporate loans push net loans in May 19 up by almost THB90 billion over-month, highest jump this year. (Business Brief No.3807)

Bridge loans and working capital loans for corporate accelerated in May while retail loans in almost every category, especially auto loans as well as secured and unsecured personal loans, continued to increase. Hence, the net loans of 14 Thai commercial banks as of the end of May 2019 rose by almost... Read more

21 Jun 2019

Financial Markets

The Baht recorded a 6-year high, while the SET hit its highest level in 8 months.

The Baht hit a 6-year high against the US dollar. The Baht fell briefly early in the week, as investors covered their short US dollar positions ahead of the FOMC meeting. However, the Baht rebounded later and hit the strongest level in 6 years at THB30.79/USD after the Fed meeting. Although the Fed ... Read more

20 Jun 2019

Financial Institutions

MPC meeting on Jun 26 is expected to keep policy rate unchanged…amid concerns over stability of monetary system (Business Brief No.3805)

KResearch expects Thailand’s Monetary Policy Committee (MPC) to keep the policy rates unchanged at 1.75 percent during its fourth meeting of 2019. The MPC is likely to weigh risk factors to financial stability in its monetary policy. In particular, household debts further accelerated in the first q... Read more

14 Jun 2019

Financial Markets

The Baht hit a 3-1/2 month high, while the SET rose on expectation of Fed rate cut within this year.

The Baht hit a 3-1/2 month high of THB31.14/USD. The Baht rose along with net foreign stock and bond buying orders earlier in the week. In addition, the US dollar tumbled on an expectation that the Fed might cut its policy rate by the end of the year, and disappointing US economic data, including we... Read more

7 Jun 2019

Financial Markets

The Baht hit an over 3-month high, while the SET rose on domestic and foreign factors.

The Baht hit the strongest level in over 3 months at THB31.28/USD. The Baht strengthened in line with net foreign stock and bond buying orders, while the US dollar fell on the Fed Chairman’s remarks that the Fed would act appropriately to sustain the US economic expansion, fuelling expectation of th... Read more

31 May 2019

Financial Markets

The Baht strengthened, while the SET dropped on the trade wars despite support from foreign investors’ net purchase.

The Baht strengthened, after having fallen earlier in the week. The Baht weakened along with other regional currencies that were pressured by concerns about the trade tension between the US and China. However, the Baht rebounded later in the week on net stock and bond buying orders of foreign invest... Read more