Effects of Central Bank Support Measures in COVID-19 on Commercial Banks’ Performance: Evidence from Thailand

Thailand’s Central Bank implemented financial rehabilitation measures during the COVID-19 pandemic to support individuals, businesses, and the banking sector. This study examines the effects of these policies on the performance of Thai commercial banks listed in the Stock Exchange of Thailand from 2017 to 2021. Using financial ratios and stock returns as performance indicators, we find notable differences between indicators from before and during the pandemic. Regression analysis revealed a negative correlation between the credit risk reduction measure and return on equity, while a positive, though statistically weak, correlation was also observed between this policy and stock returns. In contrast, the liquidity improvement and debt repayment holiday measures showed limited effects. These findings provide insights into the design and effectiveness of central bank policies during times of crisis.