Thailand is prepared for global financial liberalization
and will develop local banks to be on par with foreign banks within the next
Finance Minister Thanong Bidaya urged local commercial
banks on Tuesday to accelerate adjusting themselves in preparation for
anticipated stiffer competition now that many countries are pushing for
He said the business environment has rapidly changed
amidst pressure from the financial liberalization.
So, local financial institutions must accelerate
modernizing themselves to prepare for fiercer competition by adopting
efficient risk management and developing personnel skills.
He said whether or not the countryís financial system
would become stable depends on the strength of the local financial
To develop themselves, the financial institutions would
need to have both local and foreign alliances to share their experiences and
use them to boost their strengths.
He believes that local financial institutions will be as
developed as foreign banks within the next three years, following the Bank
of Thailand (BOT)ís move to have local commercial banks comply with the
new international agreement on capital, known as Basle 2.
Under the new rule, local commercial banks will have a clearer guidance
on lending and supervision of non-performing loans (NPLs), said the finance