Thai Banking Sector Outlook Remains Stable Despite Ongoing Political Impasse --Moody's

        0433 GMT [Dow Jones] Thailand's banking sector looks likely to enjoy a relatively stable outlook during the next 12-18 months, according to Moody's Investors Service. "While political tensions in the country have caused economic growth to slow since 2013, dampening consumption and delaying investments, we expect only a moderate deterioration in the banks' asset quality profiles; in particular, in their retail and small- and medium-size enterprise segments," says Alka Anbarasu, a Moody's assistant vice president. In its latest research report, Moody's optimistic view was attributed to the banking sector's stable liquidity and funding conditions as well as local banks' ability to withstand the expected moderate increase in non-performing loans. However, it points out that the prolonged political impasse has limited the government's ability to disburse planned funds for infrastructure development and that investor confidence may be eroded if the crisis drags on for long or if political violence escalates. (nopparat.chaichalearmmongkol@wsj.com)
        (END) Dow Jones Newswires

        May 07, 2014 00:33 ET (04:33 GMT)