Boi Business Banking

The banking sector in Thailand is an essential part of the nation's financial services industry. In other words banking sector in Thailand is well established. The history of the Thai bank dates back to 1865 when the Hong Kong and Shanghai Bank has appointed its agents in Bangkok. Therefore, HSBC has established a branch in Bangkok, becoming the first bank to open a branch in the country.

After creating a branch of HSBC, many European countries as well as investment banks have opened their branches. Consequently, foreign banks became the dominant players in the country's banking sector. To counter the dominance of foreign banks, Siam Commercial Bank - the first Thai bank - was created in 1906. Later, most Thai banks have been opened to trade with Asian countries, following the Second World War, when most foreign banks have been forced closed.

After the Second World War, the Thai government adopted a policy of protection to promote the growth of Thai banks in the country, which included limiting the operation of foreign bank branches. Consequently, foreign banks have become less dominant players in the banking sector of Thailand. Since 1960, a number of innovative economic and social development plans have been introduced in the country, which led to a rapid expansion of banking in the provinces of Thailand, resulting in over 3,000 banks across the countries.

banking system of modern Thailand is composed of a variety of financial institutions including commercial banks, special purpose bank and Government Savings Bank. Commercial banks are perhaps the most popular among banks in Thailand. The commercial banks include both local and foreign banks.

Being the largest financial institutions in the country, Thai commercial banks to make a range of services including the acceptance of time savings and demand deposits, lend money through overdrafts, discounting drafts, and leasing. Their activities cover also paid services like child care, feasibility studies of syndicated loans, and consulting on mergers and acquisitions. Apart from these, in some cases, these banks issue securities filing, with the exception of the subscription and issuance of debt securities.

Commercial banks in Thailand, consisting of branches and representative offices of foreign banks are operated in accordance with Thai law and regulations formulated by the Ministry of Finance (MOF) and Bank of Thailand (BOI.) Formed in 1875 by the Department of Thailand, the Ministry of Finance first worked as an agency of government to manage the national finances, collecting revenue, and disburse funds royal.

In 1933, he received his present name and status as a result of the adoption of the Civil Service Reform Act. With eight departments and 16 state enterprises under its control, the main functions of the Ministry of Finance has oversight of issues relating to the operations of public monopolies, ownership, and cash. In addition, it has the authority to provide loan guarantees to financial institutions, government agencies and state enterprises.

Bank of Thailand began its activities in accordance with the wording of the Act on the Bank of Thailand, April 28, 1942. Among its tasks are the design of monetary policy and supervision of financial institutions.

Now we will discuss banking regulation on bank licensing. According to the Commercial Bank Act, first a request containing the information as provided by the department, must be filed with the Ministry of Finance to establish a commercial bank in Thailand. Upon approval and obtaining a permit from the department, a commercial bank is opened as a limited partner.