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 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.
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.
The governor of the Bank of Thailand, Prasarn Trairatvorakul, has seen the country's banking sector show remarkable resilience over the past few years. However, he is now looking for its lenders to expand their services into neighbouring countries, as well as offer more sophisticated products at home.