In April 2018, the government of Thailand approved tax incentives for banking mergers in hopes of stimulating consolidation. Thailand’s banking sector is fragmented compared with similar-sized economies in the region, but is looking to catch up. Kat Van Hoof reports.
The economic growth in Cambodia, Laos, Myanmar and Vietnam has not escaped the attention of Thai politicians and finance professionals. They are now working to make the most of the opportunities for Thai banks, companies and the stock exchange in the CLMV region. Peter Janssen reports.
Ever since the Asian financial crisis in 1997, Thai companies have been steadily expanding abroad. They have been helped in no small part by their easy access to the capital markets, though often with a reliance on the large multi-national banks as opposed to their domestic counterparts. Peter Janssen reports.
The Stock Exchange of Thailand has ambitions to double its market capitalisation by 2020 by diversifying its pool of investors. Nikkei staff writer Yukako Ono reports.
As Thailand loses some of its allure, Japan’s big banks are following their corporates into Cambodia, Laos, Myanmar and Vietnam, using their Thai subsidiaries as strategic partners. Peter Janssen reports.
Vietnam is on its way to becoming a heavyweight presence in south-east Asia, with the top ranking for asset growth, while Indonesia retains its crown as the most profitable country in the region.
The launch of the Asean Economic Community has opened up a new wave of opportunities. However, with Western banks pulling back from Asia and domestic banks all-powerful in the region's more developed markets, it may only be the Greater Mekong region that sees any discernible change to its financial landscape in the near future.
As the Association of South-east Asian Nations enters the last year in the run-up to its planned economic integration, Singapore, Thailand and Malaysia are on track to harmonise their capital markets, while others are dragging their feet.
Cross-border expansion has become a key source of growth for many of Thailand's banks, which are well positioned to take advantage of opportunities in neighbouring Myanmar and Laos, both of which are at the start of what is expected to be a huge banking growth curve.
There might not be much movement among the top positions in this year’s Top 100 Association of South-East Asian Nations Banks ranking, but Filipino lenders are on the rise, while Indonesia’s banks boast the highest returns.
