Thailand’s banking sector will be unaffected by the recent
election victory of Thailand’s Puea Thai party, according to
Tawatchai Yongkittikul, secretary-general of the Thai Bankers’
Association.

With all eyes on the economic policies of
Thailand’s incoming prime minister Yingluck Shinawatra,
Yongkittikul said bankers are optimistic about the outlook for
the Thai banking sector following the election results.

He added that although there had been concern
about the possible outbreak of violence following the election, the
Thai people have generally accepted the outcome.

 

Stronger capital base

Prior to the financial crisis Yongkittikul
said banks in Thailand had strengthened their capital base and
implemented many risk management measures. “ We are definitely in
good shape.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

He said a major issue for the Thai economy now
is access to credit, and particularly for microenterprises. “This
is the issue that banks are trying to see how they can get
involved.”

Commenting on the election results, Michael
Araneta, associate director for consulting and research at IDC
Financial Insights in Singapore, said the elections have resolved
many of the outstanding political issues in the country and
reintroduced some predictability for the economy moving
forward.

Looking ahead, Araneta said Thai banks are
expected to revisit their loan growth figures.

In Araneta’s view, there will not be a huge
upgrade in loan growth targets for retail banks, since these have
mostly remained high over the past two years.

 

Upward adjustments

“We expect some upward adjustments to
corporate lending instead. Also, some large public infrastructure
projects planned by the previous government will probably be
repackaged to reflect the new administration. Government-related
banks will proceed with plans to go into SME banking, remittance
and payments,” noted Araneta.

He added that while it is said that the Puea
Thai party is pro-poor/pro-rural areas, its pro-poor/pro-rural
agenda has to be separated from banking-related policies, which
will most likely prove to be “more of the same”.

“The Bank of Thailand has always proven to be
independent in terms of banking regulation, so its policies,
particularly around the country’s Financial Sector Master Plan,
launched last year, will continue.” said Araneta.