Bangkok Bank, which has the biggest foreign operation among Thailand’s big four banks with international lending comprising 16-17 percent of total loans, plans to open a branch in Phnom Penh this year. It is also the only Thai lender with a banking license in Burma.
"We do not expect to see strong growth in the near future, but it’s an opportunity that will boost organic growth for Thai banks," said Adisorn Muangparnchon, a Bangkok-based analyst at Phillip Securities. "Risk will be limited, given most Thai banks are following Thai companies expanding in the region."
Bankers have voiced concerns about compliance and regulatory uncertainty, especially in Burma. But Thai companies remain upbeat about the region.
"Economies have a very strong potential with average growth of 7 to 8 percent a year. Burma’s (energy drink market) has grown 150 percent in the past year," said Sathien Setthasit, CEO of Thai energy drink maker Carabao Group.