Banking

The banking sector experienced mixed results in 2017. Although bank loans and asset quality benefitted from the country’s ongoing economic recovery – with operating profits rising as a result – high provisioning costs and preparations for the new accounting standards that take effect in 2019 saw net profits decline for many larger commercial banks. The sector is resilient, well capitalised and liquid, but non-performing loans remain high, particularly for smaller businesses. According to S&P, 2018 is set to be a turning point for the sector, with macroeconomic expansion, stabilising asset quality and an anticipated increase in public investment likely to end the credit down cycle. Banks will experience gains in earnings as provisioning costs drop and loan growth recovers, with rising infrastructure investment expected to support broader industry expansion. This chapter contains an interview with Prasarn Trairatvorakul, Former Governor, Bank of Thailand; a dialogue with Predee Daochai, Chairman, Thai Bankers’ Association; and President, Kasikornbank; and Piti Tantakasem, CEO, TMB; and an interview with Antoine Gustin, CEO, BNP Paribas Thailand; and Chairman, Association of International Banks.