Banking
From The Report: Thailand 2016
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Thailand’s banking sector remained resilient in 2015 despite challenging macroeconomic conditions, including slowing demand in China and high levels of consumer debt. Loan growth continued, despite moderating from the double-digit highs of previous years, and loan capital improved even as the non-performing loan (NPL) ratio rose. Operating profits of banks simultaneously grew, although net profits declined due to increased provisioning. As of December 2015 there were 19 commercial banks, 12 full branch foreign banks, two finance companies and three credit foncier companies registered in Thailand. An increase in cross-border transactions has raised the potential for regional expansion of domestic banks, and a number of Thai financial institutions have announced plans to expand operations. This chapter contains interviews with Chartsiri Sophonpanich, President, Bangkok Bank; Teeranun Srihong, President, Kasikorn Bank; and Darren Buckley, Country Head, Citibank.

Articles from this Chapter

Overview

Steadying the course: Government strategies aim at keeping the sector attractive
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Thailand’s banking sector remained resilient in 2015 despite challenging macroeconomic conditions, including slowing demand in China and high levels of consumer debt. Loan growth continued, despite moderating from the double-digit highs of previous years, and loan capital improved even as the non-performing loan (NPL) ratio rose. Operating profits of banks simultaneously increased, although net profits declined due to increased provisioning. A host of government stimulus packages, as well as the…

Analysis

Supportive measures: New programmes aim at stabilising lending to SMEs
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Small and medium-sized enterprises (SMEs) comprise a significant proportion of Thailand’s economic base and are critical for ongoing economic diversification, making SME financing a government priority. However, commercial SME lending in Thailand is expected to slow in 2016, as the ratio of non-performing loans (NPLs) rises against a backdrop of slowing economic growth. Recognising this, the Ministry of Finance (MoF) and Ministry of Commerce (MoC) have rolled out new SME finance programmes in recent…

Interview

Branching out: OBG talks to Chartsiri Sophonpanich, President, Bangkok Bank
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Interview:Chartsiri Sophonpanich What investments is the banking sector making in digitalisation? CHARTSIRI SOPHONPANICH: Digitalisation is affecting every aspect of our lives, and this is reflected in the growing popularity of e-commerce, mobile devices and social media. The banking industry is supporting this trend through the provision of electronic payments and transactions, and at Bangkok Bank we are upgrading our systems to support the changing needs of society. Developments in technology…

Interview

Knowing the customer: OBG talks to Teeranun Srihong, President, Kasikornbank
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Interview:Teeranun Srihong What strategy is the Thai banking sector adopting to keep the growing market of high-net-worth individuals banking domestically? TEERANUN SRIHONG: Both high-net-worth customers and upper-middle-income customers are rapidly growing segments for the domestic banking system. Thai high-net-worth customers have been engaging in private banking for quite some time, but Thai banks have not been able to service them adequately, so they have been using banks in Singapore…

Analysis

Going digital: Digitalisation is becoming the norm for the banking sector
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Despite the preference of many Thai consumers for bricks-and-mortar banks and teller transactions, mobile penetration and digital uptake are rising sharply, and digital platforms are expected to become the norm in Thailand’s financial services industry. New digital banking tools, such as mobile wallets and online payment platforms, indicate a promising future for digital banking expansion and offer considerable opportunity for banks to bolster revenues, increase client numbers and reduce operating…

Interview

Getting back on track: OBG talks to Darren Buckley, Country Head, Citibank
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Interview: Darren Buckley How has the Thai banking sector been affected by the economic slowdown, and what do you expect will be its response in the short term? DARREN BUCKLEY: The economic and political situation experienced over the past two years has obviously had some effect on the banking sector in Thailand and performance in 2014 was soft. The year began slowly coming off the back of 2013, and continued to deteriorate. Looking at direct impacts on the banking sector, credit card sales were…

Analysis

Creating opportunities: Microfinance schemes play a major role for rural residents
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After 15 years of intensive government efforts to extend credit across the nation, micro-loans are becoming increasingly popular among private sector lenders in Thailand. An increasing number of bank and non-bank businesses are now also moving into nano-finance, which provides small-scale loans without any collateral requirements. Although concerns remain about the high interest rates charged for some micro- and nano-loans, these programmes retain significant potential for both domestic and regional…