0303 GMT - Thai lenders' 3Q loan growth is likely to be flat on quarter, says UOB Kay Hian's Thanawat Thangchadakorn in a note. He says banks could be cautious around lending and focus mainly on corporate loans. However, credit costs for the banks covered by the brokerage are likely to decline on year and on quarter, he says. Many banks booked special provisions in 1Q to cushion against adverse effects from the Middle East conflict, but these pressures didn't show up in the lenders' 1H earnings, he adds. Expectations for a Federal Reserve rate increase could also be a tailwind for major Thai lenders, he says. UOB Kay Hian maintains an overweight call for the Thai banking sector.