Thailand's central bank reports Q2 2026 non-performing loans (NPL) held flat at 2.82% of total credit, but cautioned confidence remains unwarranted. The stable ratio masks deteriorating fundamentals: banks are aggressively selling off bad SME and housing loans, while Stage 2 defaults (pre-NPL) are rising and re-entry into NPL status is increasing among fragile borrowers. BoT is preparing emergency measures including deeper debt restructuring and flexible payment reduction guidelines if geopolitical uncertainty worsens, alongside existing SME credit programs already disbursing 56 billion baht.