|
|
| • EXCH RATES |
|
Baht/$ 34.04/08 (Bid/Ask)
|
GOLD |
13,300
|
|
SOMRUEDI BANCHONGDUANG
Golden gloves
Olympic gold medalist Somjit Jongjohor, silver medalist Manus Boonjumnong and other members of the Thai boxing team pose with Krung Thai Bank president Apisak Tantiworawong and other executives at the bank yesterday. Over the past three years, the state-owned bank has donated 60 million baht to support Thai boxing. |
The current political unrest is expected to be short-lived, according to the Thai Bankers' Association. Political risk increased sharply this week as police forces clashed yesterday with protesters under the People's Alliance for Democracy.
But Apisak Tantivorawong, the chairman of the Thai Bankers' Association, said the unrest would hopefully end soon.
He said the association would not call any urgent meetings to discuss the tensions, although individual banks will likely take steps to ensure the safety of their staff, property and customers.
''Hopefully, the arguments [between the PAD and the government] will remain peaceful,'' Mr Apisak said.
The country's three largest banks _ Bangkok Bank, Krung Thai Bank and Siam Commercial Bank _ have already closed nine branches altogether in Bangkok, mostly branches located in government buildings or along prominent roads used by PAD protesters.
Several banks also redirected the regular driving routes used by their armoured vans to service ATMs and transport funds and documents to avoid crowds, traffic congestion and potential loss.
Mr Apisak, also the president of state-owned Krung Thai Bank, said the renewed conflicts between PAD and the government had certainly affected business confidence, particularly among foreign investors.
''New investment has slowed in the private sector. This in turn affected new bank lending last month,'' he said. Krung Thai's loan portfolio fell by 13.84 billion baht in July from the previous month.
In any case, the bank is maintaining a net loan growth target of 60 billion baht for the full year, or a 6% gain from last year's loan results.
''Political uncertainty has now become a bigger risk than external factors,'' Mr Apisak said. ''Businesses that had been worried about energy prices now have gained some respite thanks to the falling cost of oil, although concerns about the US economy and sub-prime mortgage problem remain.''
The Foreign Bankers' Association, meanwhile, held its quarterly meeting yesterday. A spokeswoman said that while security and political risk were discussed, the main focus was the implications of the new Financial Institutions Business Act.
She said that foreign banks were seeking greater clarification and understanding about the new law, which significantly increases penalties for violations, imposes greater restrictions to curb conflicts of interest but also expands the potential scope of business for banks.
Prev
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Next
