Banking
Bank of Thailand: five big challenges in resolving the economic crisis
According to the Bank of Thailand, financial stability of the country is sound while external stability remains strong, with low and manageable levels of public debt, and a flexible labor market.

Mr. Sethaput Suthiwartnarueput, Governor of the Bank of Thailand (BOT) revealed in his first meeting with the press, that the public health crisis brought about by COVID-19 has severely impacted global economic activities, including Thailand.
The lockdown in Thailand has significantly affected SMEs and households. Foreign tourist arrival is expected at only 6.7 million person in 2020, from around 40 million person last year, accounting for the loss in tourism revenue of 10 percent of GDP.
A patient in intensive care unit
Meanwhile, second quarter export hit the largest contraction in 11 years. The analogy can be drawn to that of a patient in intensive care unit.
To this end, five big challenges for the BOT going forward are to
1) Sustainably solve the debt crisis which will enable households and businesses to weather the COVID-19 crisis,
2) Maintain financial stability to support economic recovery,
3) Maintain macroeconomic stability to ensure that the Thai economic structure can withstand any volatility during the pandemic and beyond,
4) Build public trust and make the BOT to be one of the most trusted public agencies and
5) Improve the efficiency of the BOT’s operation as an outcome-oriented organization and create the sustainability of the Thai economy and society.
The BOT firmly believes that the Thai economy is strong enough to withstand this crisis due to the fact that we have been successful in containing the pandemic of COVID-19.

Moreover, financial stability of the country is sound while external stability remains strong, with low and manageable level of public debt, and flexible labor market.
Move from blanket measures to targeted responses
As Thailand’s contexts have changed, the BOT assessed that the approach to resolving this crisis would need to move from blanket measures that were quickly rolled out to tackle the problems, to measures that are more targeted, comprehensive, and flexible with consideration to possible side effects.
Due to limited resources, the authorities must allocate resources appropriately to fully assist those who are in need.
One example that the BOT has already implemented is the adjustment in the debt moratorium policy launched during lockdown when businesses closed down, and employees worked from home or workers and firms became cash strapped because of declining working hours, to promoting more targeted approach where financial institutions apply debt restructuring appropriately based on debtors’ repayment abilities, analogous to the situation where the doctor choose the treatment for his patients according to their symptoms.
Source : Bank of Thailand
Banking
APAC corporates likely to improve in 2021
Moody’s Investors Service says in a new report that credit conditions in APAC will improve in 2021, supported by the gradual recovery of economic activity given the early containment of the pandemic in several Asian economies.

Ongoing fiscal and monetary support in both advanced and emerging markets will also aid improving conditions, but renewed lockdowns in parts of the world have stalled the nascent global economic recovery and create uncertainty around improving credit conditions.
(more…)Banking
Can Fintech drive a strong post-COVID-19 recovery in Asia?
The pandemic has highlighted the power of digital technology. Now is the time to harness this power for inclusive growth so that communities, especially in poor and remote areas, can survive the crisis and thrive.
Banking
BoT sees mild impact of new COVID-19 wave on the economy
The Bank of Thailand (BoT) does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended.

BANGKOK (NNT) – Despite a new and wider wave of COVID-19 infections in the country, the Bank of Thailand (BoT) has assessed that the economic impact of the situation will not be as severe as the first wave as the effects of the virus are not as pronounced, and public health preparations, including plans for vaccination, are in place.
(more…)-
Forex4 days ago
Leverage from Forex Brokers & How Beginners Can Benefit from It
-
Economics1 day ago
Thai economy to grow 4% in 2021 following 6.5% decline in 2020
-
National1 day ago
Human trafficking cases in Thailand hit decade low due to COVID-19
-
Banking2 days ago
APAC corporates likely to improve in 2021