Krungthai Bank has broadened its network in Myanmar with a focus on large local firms and joint ventures.
KTB president Vorapak Tanyawong said
yesterday that Myanmar was one country outside Thailand that bore close
observation because of growing investment and border trade.
The bank currently uses its border
branches to serve Thai small and medium-sized enterprises with
transactional and financial services.
About 90 per cent of Thailand's Bt150-billion trade with Myanmar goes across the border, he said.
Thailand's second-largest bank set up
its first representative office in Yangon last week. It plans to apply
the business model of its border branches aimed at capturing larger Thai
and Myanmar firms.
Other Thai banks with a rep office in
Myanmar are Bangkok Bank and Siam Commercial Bank. Kasikornbank will
follow next month with an office in Yangon.
KTB believes its rep office will be new
stepping stone for it to reach more Myanmar firms. he good relationship
of the two governments is helping to boost investment and trade.
The Myanmar government is expected to support KTB, since the bank's major shareholder is the Thai government.
The bank will start approaching Myanmar
firms and companies with Thai partners. Joint ventures and new projects
that are looking for local partners are also promising customers.
There are few larger Myanmar companies
and some have little expertise in developing businesses, so they have to
have partners. This opens opportunities for Thai firms.
The rep office is the first of four
steps in establishing a strong presence in the western neighbour. KTB
might consider setting up a joint venture with local banks. Next would
be a wholly owned subsidiary. The ultimate step is to open a
full-service branch. This process depends on the central bank in
Myanmar.
"If the economy there continues to grow
rapidly, we hope our full branch can be opened in five years," Vorapak
said. Until then, KTB will use its border branches to provide loans and
transaction services to supply chain businesses, which are expanding to
cash in on the Asean Economic Community in 2015.
For next year, even though KTB is
satisfied with its current portfolio, it wants to expand SME lending and
build brand awareness in retail banking among the private sector.
Civil servants are the main customers of retail banking, accounting for 70-80 per cent.
source: Eleven Myanmar
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