Since the last quarter of 1996, pressures on the exchange rate intensified, forcing the BankWith the progress in implementing the comprehensive programme under the IMF framework, capital flowed out at a slower pace, due to inflows from the non-bank sector. Outflows from the banking sector, especially BIBFs were observed, reflecting the poor performance of the Thai financial sector. Net profits for the first half of 1998 declined by 574 percent for the banking sector and 1,379 percent for finance companies, while non-performing loans of Thai commercial banks rose to 27.58 percent of total credit under six-month accrued interest income recognition, or 35.89 percent of total credit under three-month basis. Currently, private capital outflow continues to be compensated by inflows of the public sector.