(Bloomberg) -- Thailand’s commercial banks are financially sound and are able to withstand any economic impact from the pandemic, Bank of Thailand Deputy Governor Ronadol Numnonda said in a statement Sunday.

The banking system’s capital fund is strong with an adequacy ratio, or BIS ratio, at the “high level” of 19.2% by the end of June. Lenders are profitable and have excess liquidity, he said, in response to a report citing an economist’s comments that Thai banks are facing problems.

The central bank asked financial institutions to run stress tests and the results showed all the lenders possess sufficient capital to cope with a “severe crisis.” There are also both fiscal and monetary policies in place to help the economy, according to Ronadol.

The central bank is working with lenders to restructure debt and ensure borrowers can service their obligations, he said. This will help the financial institutions manage loan quality and prevent an increase in bad loans, according to the central bank.

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