Bank of Thailand says system NPL ratio eased to 2.82% in Q2 2026 (from 2.85%), but mainly because banks sold off bad debt, including SME and mortgage loans. NPL flows from Stage 2 are rising, and re-defaults are increasing among fragile borrowers. Personal loans (2.81%) and hire-purchase (2.05%) NPLs are up. If the war hurts harder, the BoT has prepared temporary, looser rules so banks can cut instalments more deeply. SME owners should expect tighter credit checks and should use the SMEs Credit Boost, Secure+ and pre-emptive restructuring schemes early if cash flow is strained.