Fitch expects Thai banks' NPL ratio to reach nearly 4% in 2026, the highest among regional peers, and to stay around 3-4% over the next 1-2 years. Banks are cautious on lending, and AMCs are buying fewer NPLs, so debt is harder to sell off. The Bank of Thailand warns that the current floods can damage stock and assets and worsen SME debt problems, as SME balance sheets were already weakening. For SME owners, expect tighter credit approval and possibly slower loan growth. Prepare cash-flow plans and talk to your bank early if flood losses hit income, since the BOT says it will consider debt relief details once conditions settle.