1 / 8

The Thai Banking Sector

The Thai Banking Sector. By Mrs. Vongthip Chumpani, Advisor Bangkok Bank pcl, Bangkok, Thailand 6-10 October, 2008. Impacts on Thailand. 1997 Asian Financial Crisis –lessons learnt by Thai banking industry Conservative, disciplined yet resilient financial system in Thailand

kordell
Download Presentation

The Thai Banking Sector

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Thai Banking Sector By Mrs. Vongthip Chumpani, Advisor Bangkok Bank pcl, Bangkok, Thailand 6-10 October, 2008

  2. Impacts on Thailand • 1997 Asian Financial Crisis –lessons learnt by Thai banking industry • Conservative, disciplined yet resilient financial system in Thailand • Debt:GDP H-1/08 30.4% • Debt Servicing Ratio 6.7% • Gross Reserves: STDebt 3.9 times • STDebt:Total Debt 40.6% • International Reserve $105.7 billion

  3. Foreign Debts • Current Account 2Q/08 $ -0.3 bio • Capital Inflow $ 59.0 bio • Capital Outflow -$ 58.0 bio • Healthy inflow mostly from FDI • Outflow of stock and money market funds since beginning 08 • SET market cap 29/9/08 $ 144 bio • Index 601 (700 in 07)

  4. Liquidity • Loan:Deposit Ratio 85%-90.5% (9/08) • MNC’s raising funds locally • Cheaper than borrowing abroad (3.75%) • Comfortable cushion to be preserved • Interest rates have room to move down • Central Bank ready and able to inject fund

  5. Thai banks’ exposure • Due to political crisis, Thai financial market off foreign investors’ screens • Minimum foreign loans – ample local funds • Very small exposure in sophisticated derivatives products • Housing and consumer loans - more with foreign owned banks and still in early stage • Property developments mostly financed by foreign private equity funds (Middle East)

  6. Political scenario • Worrisome political crisis – Thailand at a cross road • Family affair- need more time & patience to work out among ourselves • Foreign visitors and investors need not worry – business as usual • Thailand’s track record for being very friendly and accommodating to foreign investors – come what may

  7. Banks in Thailand • 17 banks incorporated in Thailand • 17 banks incorporated abroad • Total assets (12/06) THB 08.6 trillion • Total liabilities & equity THB 08.6 trillion • Total equity THB 0.89 trillion • Total deposits THB 06.5 trillion

  8. Bangkok Bank • Thailand’s largest commercial bank • Est. 1944 • Listed on the SET • Only one of 15 Thai banks remaining with same management after 1997 Financial Crisis • A large branch net-work in Thailand and SEA and China • A Branch in London since 1956

More Related