Thai central bank reiterates banks are strong, able to handle virus impact

[BANGKOK] Thai banks remain strong with high capital buffers and can handle the economic impact of the coronavirus outbreak, a deputy central bank governor said on Sunday.

The Thai banking system has high capital adequacy ratios at 19.2 per cent while liquidity remains ample, Bank of Thailand Deputy Governor Ronadol Numnonda said in a statement, responding to a report earlier from an economist claiming that Thai banks were facing problems.

"Stress test results showed every Thai commercial bank has high capital and a strong position to cope with a severe crisis," Mr Ronadol said.

The central bank is working with lenders to restructure debt and ensure borrowers can service their obligations, to maintain the stability of Thailand's financial system, he said.

Bank of Thailand Governor Veerathai Santiprabhob said on Friday that Thailand's fiscal policy should play a greater role to help the economy recover from the impact of the pandemic, adding the central bank will focus on assisting with debt restructuring.

REUTERS