Vol. VII No. 27 - Tuesday
July 1 - July 7, 2008



Home
Automania
News
Business & Travel
Book-Movies-Music
Columns
Community
Happenings
Dining Out & Entertainment
Features
Academia Nuts
Letters
Social Scene
Sports
Chiang Mai FeMail
Daily Horoscope
Cartoons
Current Movies in
Chiangmai's Cinemas
Advertising Rates
Classifieds
Back Issues
Updated every Tuesday
by Saichon Paewsoongnern


BUSINESS & TRAVEL
HEADLINES [click on headline to view story]:

Moody’s sees mixed industry outlooks for SE Asian banks

Thai investors can trade on foreign bourses on July 22

Moody’s sees mixed industry outlooks for SE Asian banks

Moody’s Investors Service says the industry outlooks for the banking systems in Southeast Asia are mixed, but overall the impact of the tightening global credit markets has been moderate. At the same time, the rating outlooks for these same banks is generally stable and, for a handful, actually positive.
“A number of mitigating factors will serve to cushion the impact on the banks of the current credit crunch, the sub-prime crisis, slowing global economies, and rising inflation,” says Deborah Schuler, a Moody’s Senior Vice President.
“Primary among them are the strong underlying growth rates of the Asian economies, the very limited involvement of most regional banks in the global capital markets, and their generally healthy financial conditions as they face this difficult economic period,” says Schuler.
Schuler’s assessment is contained in the latest version of Moody’s annual Asia Banking Outlook, which looks at a total of 15 regional systems, and has been put together by Moody’s Financial Institutions Group for Asia Pacific.
Specifically, Indonesia, Malaysia, Singapore and Vietnam face negative industry outlooks, while Cambodia, the Philippines and Thailand have stable outlooks.
“In the case of the negative industry outlooks, common reasons include the global economic slowdown and rising inflation, and the consequent impact on operating environments,” says Schuler. “Inside Indonesia, there is a sense of deja vu as the banks face macro-economic conditions similar to those prevalent in late-2005, when the government lifted fuel subsidies.”
“With the stable outlooks, a wide range of factors are in play,” says Schuler. “In Cambodia, public confidence in the banking system is recovering, in the Philippines, the system continues to enjoy the benefits of structural reform, while in Thailand, the banks are showing again a strong resilience to political risk.”
In terms of sub-prime-related exposures, these have been small and banks in the region have managed to keep losses well contained within their strong earnings, the Moody’s report says.
Looking ahead, for the region’s banking industries, the coming 18 months will mean slower loan growth and a moderate increase in NPLs, currently at cyclical lows, the report says. If irrational competition does not interfere, the higher cost of funds will be passed through to borrowers and the banks will be better able to earn the risk premiums they deserve in most markets.
The report, entitled “Asia Banking Outlook 2008”, can be found at www.moodys.com


Thai investors can trade on foreign bourses on July 22

Thai investors will be given an opportunity to test direct trading in leading international stock markets on July 22, according to a securities executive.
Phillip Securities (Thailand) president Suchai Suthatthammakul revealed last week that the company is in the process of testing the new trading system.
The proposed channel would allow Thai investors to begin trading directly and formally in eight foreign stock markets of six countries for the first time.
Included are three key US markets and five bourses in the United Kingdom, Japan, Hong Kong, Singapore and Malaysia.
“Investing in foreign stock markets is considered an investment diversification and risk management, particularly when the local stock market experiences a fluctuation,” Suchai explained. “In the past, Thai investors were given no chance to do that,” he added. (TNA)



Chiangmai Mail Publishing Co. Ltd.
189/22 Moo 5, T. Sansai Noi, A. Sansai, Chiang Mai 50210
THAILAND
Tel. 053 852 557, Fax. 053 014 195
Editor: 087 184 8508
E-mail: [email protected]
www.chiangmai-mail.com
Administration: [email protected]
Website & Newsletter Advertising: [email protected]

Copyright © 2004 Chiangmai Mail. All rights reserved.
This material may not be published, broadcast, rewritten, or redistributed.

Advertisement