Banking - Bank profits can grow if credit restructuring is extended

Banking - Bank profits can grow if credit restructuring is extended One of the biggest factors affecting banking profits is high credit provision costs due to non-performing loans. Therefore, the plan to extend credit restructuring affected by Covid-19 proposed by the government is like a breath of fresh air for the banking industry. If the banking regulator approves this extension, as with the credit card relaxation policy which has been extended until the end of the year, it will certainly help reduce operational costs originating from the burden of recovering losses in the value of financial assets (impairment) in the remaining six months of 2024. As a result, banking operational expenses could decrease, potentially increasing profits at the end of 2024. Bankers welcomed the plan to extend the relaxation of credit restructuring, considering that this would have a positive impact on bank profits. (Source : Kontan)