Thai Banks Withdraw from Laos, Citing Business Slump

[snoop1130]

 

BANGKOK (NNT) - Four major Thai banks have made the decision to close their branches in Laos, citing stricter regulations and decreased business activities as the primary reasons for their withdrawal.

 

The banks include Thai Military Bank, Bank of Ayudhya, CIMB Thai Bank, and Bangkok Bank. The group said tighter regulations imposed by the Lao authorities, particularly in areas such as lending and foreign exchange management, have hampered the ease of conducting business in the country.

 

Additionally, over the past three years, foreign commercial banks were required to raise their minimum registered capital from 100 billion kip to 300 billion kip per branch, resulting in elevated operating costs.

 

The decline in business activity, especially in cross-border trade and investments between Thailand and Laos, has further contributed to the decision to close these branches. Many Thai corporations, which had been the primary client base for these banks, have discontinued their operations in Laos. The four Thai banks have reassessed their business strategies and opted to shut down branches that were not meeting targeted returns, in an effort to manage expenses.

 

While concerns about inflation and the depreciation of the Lao kip have been acknowledged, these issues have taken a back seat compared to the perceived regulatory risks and the dwindling business activities. However, other major Thai banks such as Bangkok Bank, Krungsri (Bank of Ayudhya), Krungthai Bank, Siam Commercial Bank, and Kasikornbank continue to operate in Laos.

 

KBank has identified business opportunities in neighboring countries, particularly in relation to China’s investments in infrastructure projects like the China-Laos railway. The bank remains focused on serving large Thai corporations and mid-sized enterprises in Laos, with a portfolio that includes local currency fund transfers to facilitate cross-border trade and mitigate foreign exchange risks.

 

By Krajangwit Johjit

Caption: Image: Google

 

Source: https://thainews.prd.go.th/en/news/detail/TCATG230831141745370

 

-- NNT 2023-08-31

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Get our Daily Newsletter - Click HERE to subscribe

[SABloke]

Such quality reporting on what should be major regional financial news:

 

"The banks include Thai Military Bank, Bank of Ayudhya, CIMB Thai Bank, and Bangkok Bank." 

 

"However, other major Thai banks such as Bangkok Bank, Krungsri (Bank of Ayudhya), Krungthai Bank, Siam Commercial Bank, and Kasikornbank continue to operate in Laos." 

 

So Bangkok Bank is shutting down yet continuing operations at the same time? If this part of the article is inaccurate, then how much of the rest is? ????

[RichardColeman]

11 hours ago, SABloke said:

So Bangkok Bank is shutting down yet continuing operations at the same time?

I imagine that unless the BB is shutting down in Pattaya, 95% of readers on here could not give a hoot !

[JCauto]

Understandable. The Government's complete lack of fiscal responsibility is really biting them in the butt and they're becoming desperate to find ways to stop the bleeding. What they're proposing in the new banking laws will not just lead to an exodus of banks, but of businesses as well.

[bignok]

Laos is strange. I couldn't buy usd

 

You had to show bordering pass to exchange money in airport. No signs in airport what the visa fee is or what currencies they accept.

 

Backwards dump.

 

<deleted> country

[jacko45k]

On 8/31/2023 at 8:27 PM, SABloke said:

Such quality reporting on what should be major regional financial news:

Trying to read between the lines it sounds like they decided to close some branches.

[Liverpool Lou]

On 8/31/2023 at 5:12 PM, snoop1130 said:

Four major Thai banks have made the decision to close their branches in Laos ...

The banks include ... Bangkok Bank.

On 8/31/2023 at 5:12 PM, snoop1130 said:

major Thai banks such as Bangkok Bank ... continue to operate in Laos.

Right.

Edited September 3, 2023 by Liverpool Lou

[saakura]

"The banks include Thai Military Bank, Bank of Ayudhya, CIMB Thai Bank, and Bangkok Bank." 

 

I thought that the Thai Military Bank changed to TMB over about 15 years ago and then merged with another bank many years ago to become TTB?

 

[sidneybear]

I'm surprised that so many Thais use Bangkok Bank, let alone Laotians.

[transam]

7 minutes ago, sidneybear said:

I'm surprised that so many Thais use Bangkok Bank, let alone Laotians.

Why....?  ????

[sidneybear]

1 minute ago, transam said:

Why....?  ????

Maybe I've been unlucky with them, but I've always found them highly bureacratic and difficult to deal with. I've had more luck with SCB.

[transam]

Just now, sidneybear said:

Maybe I've been unlucky with them, but I've always found them highly bureacratic and difficult to deal with. I've had more luck with SCB.

I cannot say the same, 17 years with no real probs.

 

I had an operation up north, went to pay with my BKK Bank card, it didn't work, lucky there was a BKK Bank actually in the hospital grounds, I went and asked why a problem, the manager dealt with it, she said it is because your file says you are a tourist, you should have been noted as long stay customer.

 

Anyhooo, she used her position to amend the problem and get my money out of the ATM, can't remember how she did it, she said when you get home, go to your branch to alter your details....????