Damages to Thai Financial Instituti

Damages to Thai Financial Institutions The crisis now plaguing the U.S. financial institutions has caused very little damages to the Thai financial institutions that have investment interests abroad. This is because Thai commercial banks, in particular, maintain foreign investment concerns that amount to only 1.6 per cent of their formal financial assets. Their investment in foreign bonds also has a proportion of only 13 per cent of their overall formal foreign loans. In addition, the majority of Thai commercial banks have invested in government-insured foreign credit instruments, and this has to some extent reduced the risks that might be incurred. According to the governor of the Bank of Thailand, the total value of the damages sustained by the Thai financial institutions is only 4,800 million baht, or 0.1 per cent of the total value of the credits they have issued, amounting to 9.4 trillion baht. The damages are thus proportionately quite small.