Despite sizeable increases in the use of nonbank sources of finance, the private sector in Thailand still relies heavily on the banking sector. As such, the speedy resolution of remaining problems on banks’balance sheets is crucial in re-establishing the single most vital link between savers and productive activity in the Thai economy. While the relative strength of household balance sheets should facilitate consumption to expand further, medium-term growth remains constrained by balance sheet weaknesses in the corporate and financial sectors that continue to limit investment growth. In this regard, a re-opening of the TAMC to private banks could also be beneficial so long as the rules are fair and transparent.