1. Introduction
Thailand is an emerging Southeast Asian financial market, comprising an increasingly perfecting network of markets and institutions, which provide a relatively wide range of financial products and services towards domestic and international investors. Thailand financial system, since established in 1940 [1], has experienced the cautious and pragmatic management period in 1960-1970s, the financial liberalization period in late 1980s and early 1990s [2] and the restructuring period after1997 Asia Financial Crisis [3]. Since 2008 financial crisis, Thailand Government implements the Financial Sector Master Plan Phase II to improve the stability, fairness, openness and competitiveness of financial sector.
The Thailand financial institutions (FIs) could generally be divided into three categories – respectively the commercial banks, the specialized financial institutions (SFIs) and the non-banking financial institutions. The FIs in Thailand are well-defined functions and clear division of work. Thailand domestic commercial FIs mainly engage in the activities of corporate bonds, the small and medium-sized (SMEs) loans and other individual consumer loans, while the foreign banks invest in foreign exchange and derivatives. And SFIs work as the conductor of the special project based on the government policy.
2. Regulation of Financial Institutions
The regulatory system is being completed with the development of Thailand financial system reforms over these years. The principle regulator of the Thailand financial markets is the Bank of Thailand (BOT), the Security and Exchange Commission (SEC), the Office of the Insurance Commission (OIC) and the Ministry of Finance (MoF).
The BOT was established in 1942 and empowere...
... middle of paper ...
...1 (2008, FIBA), see:
[9] [10] BOT (The Bank of Thailand) Press Release, “License for New Foreign Commercial Bank to Operate in Thailand in accordance with the Financial Sector Master Plan Phase II”, No.29/2013.
[11] Thailand. Deposit Protection Agency Act, B.E. 2551 (2008)
[12] The Bank for Agriculture and Agricultural Cooperatives (BAAC).
[13] The Bangkok Bank. Annual Report 2012. Page 80.
[14] The Export-Import Bank of Thailand.
If the development of Financial Market in America is like a sturdy adult, I would say the development of Financial Market in China is just like a child. The history of the U.S. financial market was established and has been growing over two centuries. For China, only twenty year has now passed since the financial market was built and growth. The Chinese financial market seems to be immature compared to the U.S. For example, China’s financial market does not have a thorough monitored stock market. The child is just starting to imitate the behavior and follow the step of the adult. However, the child is too young that mistakes always being made. On the other hand, since the child is in his early growth stage, a high level of growth is undertaking and a large progress might be attained. In today's China’s financial market, it is necessary for China to gather finance professionals in development of financial market. As a recent graduate student, working in the finance field less than a year, it is extremely hard for me in making a tiny positive effect on the growth of Chinese financial. However, to be engaged myself to the development of Chinese financial market is my long-term career goal.
In the integration of Indian financial market with international markets, the Reserve Bank of India to market development has been that of cautious and informed by the experience of other developed and developing countries. Even within the constraints imposed by this approach, the Reserve Bank and the India Government have taken steps that include progressive liberalization of capital flows, calibrated increase in investment limits for Foreign Institutional Investors in government and corporate debt, introduction of Qualified Foreign Investor as a separate investor class, expansion of the menu of risk management instruments,
There is a constant flow of cash and funds through the financial system due to the financial institutions as they assist money movement among the borrowers and lenders (lecture notes, chapter 8, 9, 15) a financial institution is basically a firm like a bank which acts as a safe house for depositors to keep their money and also provide loan with interest to others and this how they expand the institution. This is the basic concept of the way the economics works in a country and also how a bank functions. All the banks are connected to one another and if there is a problem in one of the banks the bank looses it image in the minds of the people and if it’s a big problem it can cause disaster within the financial system of the country and this can only be caused due to shortage of liquid cash. To have a proficient system the bank has to be sure to be liquid to avoid any problems. (Chapter 1) To help avoid this problem the government lays down regulations for the banks through prudential supervision (Chapter 2). The Australian regulatory power is Australian Prudential Regulation Authority (APRA), whereas in Singapore it is Monetary Authority of Singapore (MAS). The key concept of their job is to assure the people that their money is in safe hands. Keeping the capital safe is essential as it assists the bank to expand and help them pay off any debts when needed (Chapter 2). In context to if there is an emergency as the government has some control on the banks it asks them to keep some money on the ...
Pramuka Savings and Development Bank (PSDB) was incorporated in 1997 as the first private savings bank in Sri Lanka. Mr. Rohan Perera was the founder of Pramuka Bank who was the founder and chief executive officer of seylan bank previously. After resigning from Seylan Bank Mr. Perera applied license to incorporate a commercial bank from Central Bank Sri Lanka. But Central Bank only gave license to operate a Savings and Development Bank. But that was also a debatable topic. At that time National Savings and Investment Bank was the only bank which was incorporated by a Parliament Act. Since there was no any regulatory frame work which lead private sector savings banks to carry out its activities.
The Stock Exchange of Thailand (SET) is a well-developed financial institution which welcomes foreign investment.
NBB can expand and reach other countries in the GCC market not only operate in Bahrain, Riyadh and Abu Dhabi, and this expansion can increase the profits of the banks; and later they can expand globally. While SCB has the opportunity of expend globally in countries across the world, and even within one country such as Bahrain it can increase the branches to be easy to reach. In Africa, it can Agri wallet penetration as it is small and currently under cultivated and the opportunity for growth is good. Also has the opportunity to Merger with other firms and acquisite smaller institution and makes them operate under the name of
Southeast Asia financial crisis started in Thailand currency crisis, and Thailand currency crisis has been brewing as early ...
Credit for Federal benefits . However, do not assume the functions of the National bank currency issue until 1967 when it was replaced by the Board of Commissioners of Currency, Malaya and British Borneo , where it became the only authority to issue currency in Malaysia .
The retail bank, as the core business of the Shinsei bank Group, has developed a stable, liquid and low-cost funding base. In its non-core business, although there was a slower growth in...
China’s financial system involves two segments roughly, banking sector and stock market respectively. Even though China has a long history, the banking system was rarely built approximately 60 years ago. Before the transition in 1978, Chinese banking system was characterized by highly leading by unique bank which is the People’s Bank of China both in policy and commercial business (Guizot, 2007: 19). It also mentions that in the late 1970s, China re-established a new system which was divided commercial business work at Big Four stated-owned banks (“the Industrial and Commercial Bank of China, Agricultural Bank of Chi...
Customers are provided the facility regarding bank assurance by means of modern-day commercial banks. When customers have to deposit certain resources in government places of work or courts because particular purpose, financial institution execute itself as the guarantee for the customer, alternatively on concession of depositing fund by customers.
The banking sector continues to play pivotal roles in the growth of the world’s economy (World Bank, 2008). Their services include clearing and settlement systems to facilitate trade, channelling financial resources between savers and borrowers, and various products to deal with risk and uncertainty (Bollard, 2011). Governments, international financial firms and donors across the world have continually acknowledged that access to financial services can play a key role in poverty alleviation and reducing hopelessness of poor people (World Land Trust, 2013). Despite the efforts of the World Bank and other financial institutions to expand the financial inclusion of all especially the poor, estimated 4 billion people
Systemically important payment systems include the large value payment system MEPS+ and securities and derivatives clearing and settlement systems operated by the Singapore Exchange (SGX). Two financial central counterparty clearing house (CCPs) are the Central Depository (Pte) Limited (CDP) that clears equities and corporate debt securities; and the Singapore Exchange Derivatives Clearing Limited (SGX-DC) that clears exchange traded and OTC derivatives. CDP’s value of transactions processed was equivalent to 94 percent of GDP in 2012. Worldwide, SGX- DC is the eighth largest clearer in exchange traded equity index futures. Singapore is also one of the largest trading centres for OTC derivatives in Asia. CDP and SGX-DC are assessed as effective and efficient CCPs with sound risk management frameworks. Both CCPs comply with relevant international standards. They are guided by SGX’s comprehensive and transparent risk management framework comprising clear policies, sound governance arrangements and operational systems, accompanied with business continuity procedures that are regularly tested. The CCPs apply a comprehensive credit risk management framework which serves to maintain sufficient financial resources to cover the default of the clearing member and its affiliates with the largest exposure, as well as the default of the two financially weakest clearing members. However, SGX’s
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.