There were 2.9 million SMEs in Thailand in 2010, constituting 99.6% of all enterprises and providing 78% of employment including agriculture. The economy of Thailand was hit by two major events during the period : political instability and the financial crisis originating in the West. This problem was compounded in Thailand by systemic volatility in financial markets. The Asian financial crisis and the recent global financial crisis have made it difficult for Thai banks to accept risky loans, not least because they were often burdened with extremely high non-performing loan (NPL) rates. The lesson learned from the Asian crisis in 1997 was that adequate capital alone cannot encourage bank lending. Banks will only lend when they are comfortable with the level of credit risk.