The period of war and Japanese occupation weakened the traditional
hold of the European trading houses and banks in Thailand. In their
absence, largely Bangkok-based Chinese entrepreneurs diversified their
fields from trade to commercial banking and insurance, so that by the end
of the war these commercial banks had formed an independent business
base for financial dealings and investment (Suehiro 1989: 154–7). Another
trend influencing economic activity in Bangkok was the tendency for
Chinese Thais – after the 1949 communist takeover of China – to retain
their savings in Thailand. This provided a pool of local capital for business
development (Keyes 1987: 152–3) The European firms which set up
in the post-war period concentrated on importing, specialising as agents
for items such as automobiles, or they maintained engineering divisions
for the servicing and installation of capital works (Suehiro 1989: 174–7).