intends to eliminate duplications of services offered by different types of financial institutions within one conglomerate so that financial ions fully economy of scale. Thus, there can only be one type of depos taking institution in a financial conglomerate. A financial group that those ses more than one deposit-taking institutions has liquidate possess to merge or units until it has only one deposit-taking channel
promte efficiency of financial institutions' operations by various as the llowing: tax constraints means such u bank on mergers, loosening rules on opening transactions branches, revising the process of authorizing new financial mit on the from individual product to product group authorization, the efficiency number of foreign staff, and encouraging relaxing use enhancing business financial institutions to models. on tect consumers by requiring all regulated financial institutions to comply with ru can interest, discount, and service charges in a transparent fashion consumers make comprehensive comparisons before making selection. Deposit insurance is to be implemented at an appropriate time and in a proper format. After the FSMP went into effect in January 2004, several financial institutions requested an adjustment of their status that is, from financial companies or credit fonciers to commercial banks (e.g. Iron and Steel Co Kiatnakin, Credit) or retail banks (e.g. GE Money, Finance, Thai Keha, Land an House). Two BIBF were allowed to convert to full branches Générale and UFJ), whereas one full branch of foreign bank was upgraded to a subsidiary (International Commercial Bank of China). overall, implementation of FSMP together with its one-presence policy has downsized Thailand's financial institution system by almost half, from 83 units to 44 units (see Figure 4 This consolidation should help to increase financial stability in the term.