Thailand May Grant New Licenses to Overseas Banks in 2013

March 26, 2009 by Prakash Dhawan · Leave a Comment
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 Bank of Thailand may start granting new banking licenses to overseas lenders in 2013 to increase competition in Southeast Asia’s second-largest economy. The proposal is part of a new financial development plan that’s awaiting approval from the finance ministry, Chodechai Suwanaporn, director of the ministry’s fiscal policy office, said at a seminar in Bangkok today.

The nation is moving toward liberalizing its financial system even as the global credit crisis has led to the collapse of Lehman Brothers Holdings Inc. and a government bailout of Citigroup Inc. Thai banks remain strong because they hold fewer toxic assets and due to their reliance on local savings, Bank of Thailand Governor Tarisa Watanagase said on March 24.

“Those who don’t have a presence in Thailand can apply for licenses,” Chodechai said. “If we think they fit with our plan, we will allow them to do business in Thailand.”

The central bank may allow overseas lenders who already have operations in Thailand to add branches as early as this year under the plan, which is expected to be implemented from 2009 to 2013, he said. Overseas banks including New York-based Citigroup and London-based HSBC Holdings Plc are currently limited to a single branch each.

New licenses for restricted services including micro finance, Islamic banking and trust banks may be granted as early as 2011 to increase access and offer more products in the local market, he said.

“We want to fill in the gap in the Thai financial system,” Chodechai said. Thailand has 14 commercial banks, including Bangkok Bank Pcl, Siam Commercial Bank Pcl and Kasikornbank Pcl, while Indonesia has about 128 commercial banks.

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Dollar higher in Asian trade

March 20, 2009 by Prakash Dhawan · Leave a Comment
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The dollar was higher in Asian trade Friday after losing ground in reaction to the US Federal Reserve’s move to pump more than a trillion dollars into the financial system, dealers said. In morning trade, the dollar changed hands at 94.76 yen, up from 94.53 yen late Thursday in New York. The euro traded at 1.3643 dollars, down from 1.3657 in New York late Thursday and at 129.16 yen, down from 129.25.said it would also buy 100 billion dollars more in other federal agency debt, as part of a wide-ranging effort to revive the ailing US economy. The markets’ initial reaction to the Fed’s decision to step up its policy of quantitative easing, including a new plan to buy Treasury securities, has been to sell the dollar,” said Julian Jessop, chief international economist of London-based Capital Economics.have sold off the dollar since the Federal Reserve made known its plans Wednesday, raising fears the move will make US assets less attractive.

Markets in Tokyo were closed for a public holiday. On Wednesday, the Federal Reserve surprised markets with the new moves to shore up the world’s biggest economy. It said it would buy up to 300 billion dollars in long-term US Treasury bonds in the next six months and boost purchases of mortgage-backed securities by 750 billion dollars to bring its total to 1.25 trillion dollars this year.

The US central bank  

“We do not expect this sell-off to last,” he said in a market commentary. Marc Chandler, a currency strategist with Brown Brothers Harriman, said the Fed’s measures may turn out to be dollar-supportive in the longer term.

“We continue to believe that the aggressiveness of the US policy response… will be rewarded with an earlier recovery than in Europe and Japan,” he was quoted as saying by Dow Jones Newswires. Investor

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