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Thailand is facing an AMC Capacity Crisis. Non-performing loans in the financial system aren't just a quarterly reporting figure for banks. They're also tied to the mechanism responsible for managing that debt once it leaves a bank's balance sheet — Asset Management Companies, or AMCs, which play a critical role in allowing banks to clear bad debt and resume new lending.
At a household debt panel hosted by the Stock Exchange of Thailand in 2025, a senior executive from Bangkok Commercial Asset Management (BAM) revealed figures that expose a structural challenge facing Thailand's AMC sector. This article explains how large the problem is, and why technology is becoming a critical factor in addressing it.
AMC Capacity Crisis
Current situation:
Thailand has 86 AMCs in operation
Combined, they resolve roughly THB 100 billion in NPL per year
Current system-wide NPL stands at approximately THB 1 trillion
At current capacity, it would take 7-10 years to clear existing NPL without expanding operations
What Is an AMC, and Why It Matters
An AMC, or Asset Management Company, is a firm that purchases or receives transferred non-performing loans from banks to manage independently.
When a bank issues a loan and the borrower is unable to repay it, resulting in a non-performing loan, the bank can sell or transfer that debt to an AMC. The AMC then takes over — negotiating debt restructuring with the borrower, pursuing legal action, or repossessing and liquidating collateral.
This arrangement benefits both sides. Banks clear bad debt from their balance sheets, freeing up capacity for new lending. AMCs bring specialised expertise in debt recovery that banks — whose core business is lending, not collections — typically lack.
AMC Capacity Crisis: 86 Firms and the Numbers Behind It
What does this tell the financial industry? This is the AMC Capacity Crisis in numbers. Data from the Stock Exchange of Thailand panel shows Thailand currently has approximately THB 1 trillion in non-performing loans, plus another THB 1 trillion classified as Special Mention Loans — loans with elevated risk that haven't yet become non-performing. Combined, that's roughly THB 2 trillion in at-risk credit nationwide.
Meanwhile, Thailand's 86 operating AMCs have a combined capacity to resolve approximately THB 100 billion in NPL per year.
Doing the math: without any change, it would take Thailand's AMC sector roughly 7 to 10 years to clear existing NPL — and that doesn't account for new NPL entering the system along the way.
Bad debt is entering the system faster than AMCs can process it.
Why This Matters More Than It Appears
At the same panel, the Chairman of the Thai Bankers Association pointed to the bigger picture: Thailand's household debt, combining formal and informal sectors, exceeds 100% of GDP, and Thailand's informal economy accounts for 48% of overall economic activity — higher than many countries in the region.
These figures reflect that Thailand's household debt problem isn't just about high debt levels. It's a structural issue connected to several factors: the size of the informal economy, borrowers' access to credit data, and the capacity of downstream mechanisms like AMCs to handle the volume of bad debt being generated.
When AMCs can't process NPL as fast as it's created, the impact flows back to banks as well. Banks must hold non-performing assets on their books longer, which affects their capacity for new lending and the overall quality of their balance sheets.
Policy Proposals Under Discussion
At the panel, several structural solutions were proposed, including expanding the operating capacity of existing AMCs through measures such as low-interest loans for AMCs, relaxed regulations for reperforming loans, and allowing joint ventures between AMCs and other partners.
There was also discussion of establishing a National AMC at the country level — potentially structured around an existing AMC, a newly established entity, or a multi-bank collaboration.
These proposals remain under discussion, but they reflect that Thailand's financial sector is taking this issue seriously and actively exploring ways to make NPL management more efficient.
Solving the AMC Capacity Crisis with Technology
If the core constraint facing AMCs is processing capacity rather than capital alone, the key question becomes: how can existing AMCs manage bad debt faster and more efficiently — without waiting for AMC expansion or a National AMC, both of which require considerable policy lead time?
AMC operations typically span several stages: receiving transferred NPL portfolios from banks, valuing assets, negotiating debt restructuring with borrowers, and managing legal proceedings and asset disposal. Each of these stages presents an opportunity for technology to reduce processing time.
The key issue is that processing large NPL portfolios through largely manual workflows limits how much AMCs can scale their operations relative to the growing problem. Systems that accelerate asset valuation, portfolio prioritisation, and case tracking become a meaningful factor in an AMC's ability to handle its existing caseload.
What Financial Institutions and AMCs Should Consider
Given the figures and policy proposals discussed above, financial institutions and AMCs should review several aspects of their own internal processes.
Organisations should assess how long it currently takes to transfer NPL portfolios from banks to AMCs, and which stages still rely on manual work.
They should examine whether asset valuation and portfolio prioritisation happen fast enough relative to the volume of new NPL entering each month.
And they should evaluate whether they have sufficient data for strategic decisions — such as which portfolios to prioritise, or which loans show signs of returning to performing status.
How TBN Supports This Process
TBN Corporation develops non-performing asset management systems as part of its End-to-End Lending Solution, covering the process from receiving transferred NPL portfolios and asset valuation through to tracking progress on asset disposal. Each module is designed to operate independently and connect with a financial institution's or AMC's existing systems — without requiring a complete infrastructure replacement.
This approach lets organisations start at their biggest bottleneck first, then expand to other parts of the process as they're ready — consistent with what industry experts have pointed out: expanding the operating capacity of existing AMCs delivers results faster than waiting for national-level policy, which requires considerably more time to implement.
Conclusion
The figure that Thailand's AMCs need 7 to 10 years to clear existing NPL isn't just an interesting statistic. It's a warning sign that Thailand's bad debt management system is working slower than the problem it's meant to solve.
Regardless of when policy proposals like AMC expansion or a National AMC materialise, financial institutions and AMCs can start now by reviewing their internal processes and considering how technology can accelerate the management of existing bad debt.
Frequently Asked Questions about AMC Thailand
What is an AMC?
An AMC, or Asset Management Company, is a firm that purchases or receives transferred non-performing loans (NPL) from banks to manage independently — through debt restructuring negotiations, legal proceedings, or managing repossessed assets.
Why can't Thailand's AMCs keep pace with NPL?
Thailand's 86 AMCs have a combined capacity to resolve approximately THB 100 billion in NPL per year, while system-wide NPL stands at roughly THB 1 trillion. At that rate, it would take 7-10 years to clear existing NPL without expanding operating capacity.
How can technology help solve this problem?
Systems that speed up portfolio transfers, asset valuation, and case tracking help existing AMCs manage a higher volume of NPL — without waiting for AMC expansion or national-level policy changes.
How does TBN support AMCs and financial institutions?
TBN develops non-performing asset management systems that connect with existing infrastructure and can be deployed starting from an organisation's biggest bottleneck. Contact TBN to discuss an approach suited to your organisation.
Source: Summary of the panel discussion "Household Debt and Financial Vulnerability," hosted by the Stock Exchange of Thailand (SET), August 2025. Panellists included Dr. Roong Mallikamas (Bank of Thailand), Dr. Luxmon Attapich (National Credit Bureau), Mr. Payong Srivanich (Chairman, Thai Bankers Association), and Dr. Rak Vorrakitpokatorn (Bangkok Commercial Asset Management PCL).
