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., Tata Iron and Steel Co Ltd, Kiatnakin, Asia Credit) or retail banks
(e.g., GE Money, AIG Finance, Thai Keha, Land and House). Two BIBF were allowed to
convert to full branches (Société Générale and UFJ), whereas one full branch of foreign bank
was upgraded to a subsidiary (International Commercial Bank of China). Overall, the
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 longer term.
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., Tata Iron and Steel Co Ltd, Kiatnakin, Asia Credit) or retail banks
(e.g., GE Money, AIG Finance, Thai Keha, Land and House). Two BIBF were allowed to
convert to full branches (Société Générale and UFJ), whereas one full branch of foreign bank
was upgraded to a subsidiary (International Commercial Bank of China). Overall, the
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 longer term.
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