Commercial banking in Thailand
Many Thai commercial banks are owned by Chinese-Thai who belong to the same dialect
group (Chaiyasoot 1993). The Sophonpanich family is the largest shareholder in the
Bangkok Bank, while the Lamsam and Ratanarak families control the Thai Farmers Bank
and the Bank of Ayudhya, respectively. Among the 16 commercial banks incorporated in
Thailand, the government is a major shareholder of the Krung Thai Bank and the Siam
Bank, while the largest share of the Siam Commercial Bank, the first bank established in
Thailand, is owned by the Royal Family. This concentration of bank ownership is
uncommon or illegal in Western countries.
To reduce the concentration of ownership in the banking industry, the Thai monetary
authorities adopted policies to encourage the entry of more finance companies and
introduced capital divestiture requirements for existing shareholders. The first policy
failed because Thai banks were the major shareholders of many of the new finance
companies; nine of ten largest finance companies are associated with the four major
banking groups and the Siam Commercial Bank. The second policy also did not achieve
its goals. There are now more individual shareholders but the patterns of control within
each bank have not substantially changed. Small shareholders have been unable to unify
in order to exert influence on the company and large shareholders have used other people
and related companies to buy new shares.
Although Thai bankers dictate the cost and the allocation of domestic credit, the
government does influence the operation of the banks through the regulations of the Bank
of Thailand, the central bank. The main features of these regulations include the
specification of interest rate ceilings for loans and deposits, control of new entry,
agricultural credit policy, compulsory bond holding for branch expansion, and
specification of minimum capital funds to risky assets ratio. These measures are designed
to prevent excessive expansion of credit and to ensure that the banking system is reliable.
They are similar to Western central banking practices.
Commercial banking in Thailand
Many Thai commercial banks are owned by Chinese-Thai who belong to the same dialect
group (Chaiyasoot 1993). The Sophonpanich family is the largest shareholder in the
Bangkok Bank, while the Lamsam and Ratanarak families control the Thai Farmers Bank
and the Bank of Ayudhya, respectively. Among the 16 commercial banks incorporated in
Thailand, the government is a major shareholder of the Krung Thai Bank and the Siam
Bank, while the largest share of the Siam Commercial Bank, the first bank established in
Thailand, is owned by the Royal Family. This concentration of bank ownership is
uncommon or illegal in Western countries.
To reduce the concentration of ownership in the banking industry, the Thai monetary
authorities adopted policies to encourage the entry of more finance companies and
introduced capital divestiture requirements for existing shareholders. The first policy
failed because Thai banks were the major shareholders of many of the new finance
companies; nine of ten largest finance companies are associated with the four major
banking groups and the Siam Commercial Bank. The second policy also did not achieve
its goals. There are now more individual shareholders but the patterns of control within
each bank have not substantially changed. Small shareholders have been unable to unify
in order to exert influence on the company and large shareholders have used other people
and related companies to buy new shares.
Although Thai bankers dictate the cost and the allocation of domestic credit, the
government does influence the operation of the banks through the regulations of the Bank
of Thailand, the central bank. The main features of these regulations include the
specification of interest rate ceilings for loans and deposits, control of new entry,
agricultural credit policy, compulsory bond holding for branch expansion, and
specification of minimum capital funds to risky assets ratio. These measures are designed
to prevent excessive expansion of credit and to ensure that the banking system is reliable.
They are similar to Western central banking practices.
การแปล กรุณารอสักครู่..

Commercial banking in Thailand
Many Thai commercial banks are owned by Chinese-Thai who belong to the same dialect
group (Chaiyasoot 1993). The Sophonpanich family is the largest shareholder in the
Bangkok Bank, while the Lamsam and Ratanarak families control the Thai Farmers Bank
and the Bank of Ayudhya, respectively. Among the 16 commercial banks incorporated in
Thailand, the government is a major shareholder of the Krung Thai Bank and the Siam
Bank, while the largest share of the Siam Commercial Bank, the first bank established in
Thailand, is owned by the Royal Family. This concentration of bank ownership is
uncommon or illegal in Western countries.
To reduce the concentration of ownership in the banking industry, the Thai monetary
authorities adopted policies to encourage the entry of more finance companies and
introduced capital divestiture requirements for existing shareholders. The first policy
failed because Thai banks were the major shareholders of many of the new finance
companies; nine of ten largest finance companies are associated with the four major
banking groups and the Siam Commercial Bank. The second policy also did not achieve
its goals. There are now more individual shareholders but the patterns of control within
each bank have not substantially changed. Small shareholders have been unable to unify
in order to exert influence on the company and large shareholders have used other people
and related companies to buy new shares.
Although Thai bankers dictate the cost and the allocation of domestic credit, the
government does influence the operation of the banks through the regulations of the Bank
of Thailand, the central bank. The main features of these regulations include the
specification of interest rate ceilings for loans and deposits, control of new entry,
agricultural credit policy, compulsory bond holding for branch expansion, and
specification of minimum capital funds to risky assets ratio. These measures are designed
to prevent excessive expansion of credit and to ensure that the banking system is reliable.
They are similar to Western central banking practices.
การแปล กรุณารอสักครู่..
