Thai bank lending strengthened in the second quarter, while non-performing loans edged lower.

According to the Bangkok Post, the Bank of Thailand revealed that bank lending increased 2.0% year on year in the second quarter of 2026, accelerating from a 0.2% rise recorded in the previous quarter.

The improvement signals a stronger expansion in credit after lending growth remained subdued during the first quarter.

The latest figures indicate that demand for bank financing has gained some momentum, with lenders expanding their loan books at a faster pace than earlier in the year.

At the same time, the quality of bank assets showed a modest improvement as bad loans declined during the quarter.

The combination of faster lending growth and a slight reduction in non-performing loans suggests some easing in pressure on Thailand’s banking sector.

The central bank’s latest data provide an update on the performance of commercial banks as the financial system responds to changing economic conditions.

The stronger quarterly lending performance also marks a notable improvement from the first three months of the year, when annual loan growth was only 0.2%.

At the same time,  the banking sector will continue to be closely watched as businesses and households assess borrowing conditions and lenders balance credit expansion against asset-quality risks.