Page 65 - E-BOOK

Source: Bank of Thailand

The continuously increasing NPLs of the financial institutions are a good opportunity for asset management
business, because the financial institutions tend to rush selling NPLs to maintain overall performance of the financial 63
institutions to be at constant level, without decreasing by the economic regression.

Nevertheless, from such direction, the business overview of the asset management companies, when considered
from information of the Bank of Thailand, is as follows.

Source: Bank of Thailand and Calculation

From above information, total assets of the asset management companies had growth rate at
3.37% which was consistent with the economic condition that shrank, leading to higher NPLs in the financial
institutions up to 3.11% in 2020. As a result, the financial institutions rushed putting the NPLs on auction
to reduce the reserve setting of the financial institutions. This would make overall performance of the
financial institutions to be better amidst fluctuation of the economic condition, that still demonstrated unclear
recovery. From such reason, the number of NPLs distributed in marketplaces was relatively high, and that