|
Thailand:
Struggling Out of a Deep Hole
Snapshot: 13 banks in the 500 (1999: 13) Assets: $144.9b. ($152b.)
Profits: -$8.4b. ($-9.3b.)
|
|
After
two-and-a-half years of recession, a recovering economy is allowing
banks to rebuild pudding-like capital bases. But the banks didn't
fill up on bad loans overnight, and there is no quick fix. Check back
next year.
RESTRUCTURING Fifteen local banks are down to 12, five of which
have been bought by foreign institutions. Expect at least one more
such sale and a merger or two by 2002.
LENDING After two years of declines, it wouldn't take much
to show a year-on-year increase. Consider the expected net loan growth
this year of 2% to officially be "not much."
REGULATION Post-crisis Thailand has put in place disclosure
laws and accounting standards on a par with much of the region. But
bankruptcy and civil courts have often coddled loan defaulters.
LIBERALIZATION Rules that currently allow foreign entities
to own 100% of Thai banks are set to become more restrictive after
2008.
Performance
Topnotchers: 10 Best Performing Banks
|
Institution |
HQ |
Assets
$
Mill |
Profits
$
Mill |
Profit
as
% of |
500
Rank
|
Assets |
Equity |
1 |
BANGKOK
BANK |
Bangkok |
31,495 |
-1,594.6 |
|
|
74 |
2 |
KRUNG
THAI BANK |
Bangkok |
26,458 |
-2,451.3 |
|
|
85 |
3 |
THAI
FARMERS BANK |
Bangkok |
19,539 |
-1,253.2 |
|
|
112 |
4 |
SIAM
COMMERCIAL BANK |
Bangkok |
18,445 |
-947.5 |
|
|
118 |
5 |
BANK
OF AYUDHYA |
Bangkok |
11,901 |
-585.6 |
|
|
160 |
6 |
THAI
MILITARY BANK |
Bangkok |
8,929 |
-309.8 |
|
|
183 |
7 |
SIAM
CITY BANK |
Bangkok |
7,187 |
-204.3 |
|
|
206 |
8 |
BANKTHAI |
Bangkok |
6,291 |
-512.3 |
|
|
229 |
9 |
BANGKOK
METROPOLITAN BANK |
Bangkok |
4,298 |
-159.6 |
|
|
279 |
10 |
BANK
OF ASIA |
Bangkok |
4,183 |
-299.0 |
|
|
284 |
Write to Asiaweek at mail@web.asiaweek.com
|
|
Rating
show the number of banks in each category; "E" is the lowest
grade for financial soundness.
Souce: Moody's Investors Service
|