ThailandCorporate loans propel bank growth
Loan growth at large Thai banks picked up in the first half of 2026, driven mainly by corporate lending, while borrowing from SMEs remained weak.
Thai corporate lending masks underlying SME weakness
The divergence in credit demand highlights a bifurcated market across Thailand's commercial landscape. Large corporations are using bank liquidity to fund expansion or refinance balance sheets, giving top-tier lenders momentum. However, sustained bank performance requires capital to move through entire supply chains. When small and medium enterprises remain reluctant to borrow or are priced out by strict credit risk standards, economic momentum remains fragile.
The execution risk for lenders is customer concentration. Banks relying heavily on corporate loans face margin pressure as competition for prime accounts intensifies. To maintain balance sheet quality, banks must establish structured supply-chain financing programs that allow risk-managed credit to reach smaller vendors without taking on unhedged default exposure.
Investment committees should expect large Thai lenders to maintain strict credit filters on smaller businesses while competing aggressively for thin-margin blue-chip corporate accounts.