HSBC To Apply For License To Expand Thailand Operations

[george]

HSBC to apply for license to expand Thailand operations

HANOI: -- HSBC Holdings PLC (HBC), the world's biggest lender by assets, will apply for a full banking service license in Thailand once the country's second phase of banking liberalization enters the final stages.

"In Thailand, we are restricted to one branch which makes doing a retail bank quite difficult," Michael Smith, chief executive of HSBC's Asian banking unit, Hongkong & Shanghai Banking Corp., told Dow Jones Newswires in a recent interview.

HSBC is among the foreign banks that are eager to expand in Thailand, an economy that is expected to grow 4.5%-5.0% this year. Currently, Bank of Thailand regulations restrict foreign banks to having only one local unit in Thailand.

Smith is among business leaders attending the APEC CEO Summit, a business forum held as part of the Asia Pacific Economic Cooperation Summit in Vietnam this week.

"I would very much welcome the deregulation in Thailand," a move that could allow HSBC to operate the same services as domestic Thai banks, he said.

The central bank introduced rules to help trigger a wave of consolidations and capital increasesin Thailand's banking sector in the past few years.

The move, which marked the first phase of the sector's revamp, has also prompted internal consolidations of foreign banks in the country.

Bank of Thailand's new governor Tarisa Watanagase announced Wednesday that the central bank is ready to push for the second phase in which the bank will allow local financial institutions to offer a wider range of services and eventually offer more banking licenses to local and foreign players.

Tarisa said the central bank will propose the new rules to the National Legislative Assembly before the next general elections expected by the end of next year.

--marketwatch.com 2006-11-20

[markuk]

would be welcome news to get some good quality banking and to sort out the local banks who quite frankly are awful.

[Jai Dee]

"In Thailand, we are restricted to one branch which makes doing a retail bank quite difficult,"

He's not wrong... difficult for those of us who have HSBC accounts and are not Bangkok based.

[Briggsy]

Yes indeed. But if they do a Tesco to the local banks, expect some very fast back-pedalling by the govt.

To be fair to the local banks, the private banks have made giant strides in terms of customer service in the last few years. The public sector ones are pretty awful. I had a couple of mind-bending episodes with the Krung Thai before I closed my account.

And banks in Britain are universally seen as bloodsucking overcharging entities. So all is not roses with overseas banks.

[younghusband]

Yes indeed. But if they do a Tesco to the local banks, expect some very fast back-pedalling by the govt.

To be fair to the local banks, the private banks have made giant strides in terms of customer service in the last few years. The public sector ones are pretty awful. I had a couple of mind-bending episodes with the Krung Thai before I closed my account.

And banks in Britain are universally seen as bloodsucking overcharging entities. So all is not roses with overseas banks.

Interesting point in your first para.I thought after the 1997/8 crash that foreigners would come to dominate the Thai banking sector, with Dutch, Singaporean and British players taking stakes in Thai banks.It didn't happen and after some consolidation the situation is still dominated by the old (Thai) faces.I suppose it was partly because the foreigners couldn't get a handle on the local market and partly because the Thai banks even pre 1997 had begun to introduce better service and technology, eg the old Thai Farmers Bank.

[markuk]

Yes indeed. But if they do a Tesco to the local banks, expect some very fast back-pedalling by the govt.

To be fair to the local banks, the private banks have made giant strides in terms of customer service in the last few years. The public sector ones are pretty awful. I had a couple of mind-bending episodes with the Krung Thai before I closed my account.

And banks in Britain are universally seen as bloodsucking overcharging entities. So all is not roses with overseas banks.

because the Thai banks even pre 1997 had begun to introduce better service and technology, eg the old Thai Farmers Bank.

it must have passed me on by somewhere, even today when using Kasikornbank you get your ticket and often join a waiting list on some occasions this has been as long as 90 people at the branch on sukhumvit (33 corner) - if this is good service and managing the customer needs then god help them!

[stoneman]

it must have passed me on by somewhere, even today when using Kasikornbank you get your ticket and often join a waiting list on some occasions this has been as long as 90 people at the branch on sukhumvit (33 corner) - if this is good service and managing the customer needs then god help them!

Couldn't agree with you more..Every time I go into the Banfkok Bank Branch on Thong Lo and stand in line for 30 minutes to make a withdrawal, I always wish that foreign banks were here...They would certainly improve the customer service and the Thai banks would either get better customer service or they would be gone...And do not get me started on the locals that are too good to stand in the lines and will walk up to the counter directly...

[tuky]

We get great service at our local branch of BKK Bank, never wait in a line as we get pulled off to one side each time by the manager. Having said that It took about 3 years of explaining and coercing to get a proper visa credit card, and even then I needed to give them a 200k deposit for a 100k limit. Internet banking? it turned out easier to add my wife's name to my account and use her name for the internet banking application.

At one point the Bank Manager told me to get an HSBC visa card

[younghusband]

We get great service at our local branch of BKK Bank, never wait in a line as we get pulled off to one side each time by the manager. Having said that It took about 3 years of explaining and coercing to get a proper visa credit card, and even then I needed to give them a 200k deposit for a 100k limit. Internet banking? it turned out easier to add my wife's name to my account and use her name for the internet banking application.

At one point the Bank Manager told me to get an HSBC visa card

Being pulled to one side by the manager (queue jumping in other words) isn't good service: it's just embarrassing as the Thai customers wait their turn.As Khun Anand Panyarachun said in another context, "Thais tend to become too excited about farangs".

[tuky]

We get great service at our local branch of BKK Bank, never wait in a line as we get pulled off to one side each time by the manager. Having said that It took about 3 years of explaining and coercing to get a proper visa credit card, and even then I needed to give them a 200k deposit for a 100k limit. Internet banking? it turned out easier to add my wife's name to my account and use her name for the internet banking application.

At one point the Bank Manager told me to get an HSBC visa card

Being pulled to one side by the manager (queue jumping in other words) isn't good service: it's just embarrassing as the Thai customers wait their turn.As Khun Anand Panyarachun said in another context, "Thais tend to become too excited about farangs".

It is good for the wife and myself

[calibanjr.]

Interesting point in your first para.I thought after the 1997/8 crash that foreigners would come to dominate the Thai banking sector, with Dutch, Singaporean and British players taking stakes in Thai banks.

It didn't happen and after some consolidation the situation is still dominated by the old (Thai) faces.I suppose it was partly because the foreigners couldn't get a handle on the local market

and partly because the Thai banks even pre 1997 had begun to introduce better service and technology, eg the old Thai Farmers Bank.

Uh, that's because the Thais won't allow them to, as in so many other areas. Competition is no fun!

Edited November 21, 2006 by calibanjr.