It’s only been 1 month. 1 month! What a start to the year.

When looking at the the worst performers for the past 12 months, would you bet against banks? They’re given capital by the BOT to lend out and make a spread, cheaper than getting deposits. Sure NPLs and provisions will be in the news, and I’m rather surprised players like KKP and TISCO haven’t had to raise equity capital – note still think this is possible, but it’s a similar playbook to the US Banks post 2009. Question is will they continue upon the Japanification route of not letting those weaker players in all industries go bankrupt to prevent a systemic effect? Rather poor form of capitalism in my opinion…but such is the game that exists at the moment.

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