In particular, high oil prices have weighed heavily on investment decisions by corporate customers. Next year looks better for lending along with the improving economic environment. Investor confidence has also picked up since the political situation stabilised.

President Chartsiri Sophonpanich said the government's infrastructure mega-projects that are expected to start next year would support economic growth and spur bank lending.

Several large commercial banks have revised their loan-growth goal downward for this year after their credit business was affected by the economic slowdown.

The biggest state-owned lender, Krung Thai Bank, also expects loan growth to be about 6 per cent or Bt60 billion, lower than the target of 7 per cent, or Bt70 billion.

TMB Bank has made a grim forecast that its net new loans this year will come in at about Bt10 billion, far below its budget of Bt40 billion-Bt50 billion. Bank of Ayudhya earlier aimed for loan growth of 6-8 per cent, but recently opted for a modest 4-5 per cent. Kasikornbank still believes its loan portfolio will expand 6-9 per cent.

Siam Commercial Bank is the only large bank that is confident of achieving its loan-growth target of 10 per cent or Bt50 billion for the year..