Here’s more from Fitch Ratings:
These have added to their consistently high market share in lending and deposits - the four banks combine for around 59% market share of commercial bank assets.
The focus for the large banks will need to be on protecting their market share, as well as on cost management and efficiency gains.
There is also some room for international expansion, although Fitch expects this to be gradual. The banks' initial strategy will be to primarily respond to the increased regional activities and investments of Thai corporates.
Competition from regional players in the Thai banking sector has also intensified, particularly after the acquisition in late 2013 of the Bank of Ayudhya (the fifth largest Thai commercial bank) by the Bank of Tokyo-Mitsubishi UFJ.
While Thailand's large banks are generally well-positioned against an economic downturn, downside risks to their financial buffers, and potential pressures to the ratings, may emerge if the downturn is more severe and protracted than expected.
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