Reinforcing Confidence in a Financial Institution That Provides Services According to Shariah Principles for Sustainability, While Advancing Thailand’s Economic Connectivity with the International Community.
Fitch Ratings (Thailand) Limited has affirmed Islamic Bank of Thailand’s (ibank) National Long-Term Rating at ‘AA(tha)’ with a “Stable Outlook” and affirmed its National Short-Term Rating at ‘F1+(tha)’, marking the eighth consecutive year (2019–2026). The ratings reflect ibank’s high level of creditworthiness and reinforce confidence in its role as a state policy bank providing financial services in accordance with Shariah principles, with an important role in Thailand’s Islamic financial system.
The affirmation of ibank’s ratings represents another important factor reflecting confidence in the bank’s status. Fitch believes that the Thai government would provide extraordinary support to ibank, if needed, given the bank’s legal status as a state policy bank, which is one of the key factors underpinning its ratings.
In addition, Fitch places importance on ibank’s significant policy mandate. ibank is the only Shariah-compliant bank in Thailand and has played an important role in providing financial services to Thailand’s Muslim community for more than 20 years. Fitch also notes that ibank has built up extensive expertise in its niche that would be difficult to replace, while maintaining a significant presence in providing services to retail and small enterprise clients in Thailand’s far southern provinces, where a majority of the population is Muslim.
Reflecting the Strength of ibank’s Role as Thailand’s Islamic Bank
The affirmation of ibank’s ‘AA(tha)’ National Long-Term Rating demonstrates the importance of ibank as a financial mechanism that responds to the needs of individuals, entrepreneurs and businesses seeking financial services that are consistent with Shariah principles, particularly in Thailand’s southern provinces.
At the same time, ibank continues to strengthen its financial service capabilities across products, services and management, enhancing its organizational capabilities to respond effectively to the changing economic and financial environment.
Advancing into the International Dimension: Connecting Thailand’s Islamic Finance with the Global Community
In addition to its role in serving customers domestically, ibank is seeking to strengthen its role in the international dimension in order to create greater opportunities for Thailand to participate in the global Islamic financial system.
With its business operations conducted in accordance with Shariah principles, ibank has the potential to serve as a financial bridge connecting Thailand with Islamic financial markets and business networks overseas, particularly Muslim-majority countries and member states of the Organisation of Islamic Cooperation (OIC).
The bank places importance on building and expanding cooperation with financial partners and international organizations to create opportunities for the development of Islamic financial products and services, support international trade and investment, and enable Thai entrepreneurs to access new markets.
This approach is aligned with ibank’s objective of enhancing its role from a financial institution primarily serving the domestic market to becoming an Islamic financial institution that helps connect Thailand with the international Islamic economic and financial system.
Credibility as the Foundation for Sustainable Growth
For the ratings announced on this occasion, Fitch stated that ibank’s National Long-Term Rating at ‘AA(tha)’ reflects a very low level of default risk relative to other issuers in the country, while the bank’s National Short-Term Rating is ‘F1+(tha)’ and its Long-Term Rating Outlook is “Stable.”
Fitch also noted that ibank has a record of significant government support for its capital and asset quality. Such continued government support has been an important factor in strengthening confidence in the bank’s position.
ibank is committed to continuously strengthening its position and reinforcing confidence, while enhancing operational efficiency, developing financial products that respond to customer needs, and expanding cooperation both domestically and internationally. These efforts aim to support the growth of the Thai economy while strengthening Thailand’s role in the international Islamic financial system in a stable and sustainable manner.