Thai cabinet approves 5-year financial reform plan<\/p>\n
BANGKOK (Reuter): The Thai cabinet yesterday approved a five-
\nyear plan aimed at increasing the efficiency of the financial
\nsystem and turning Thailand into a financial hub for the region,
\nan official in the prime minister's office said.<\/p>\n
The master plan for the next five years was drawn up by the
\nMinistry of Finance, the Bank of Thailand, the Stock Exchange of
\nThailand and the Securities and Exchange Commission.<\/p>\n
The aims of the long-awaited plan include improving efficiency
\nto meet increasing needs for capital and financial services to
\nsupport economic growth and increase competitiveness, the Bank of
\nThailand said in a summary.<\/p>\n
It should also strengthen the solvency and quality of
\nfinancial institutions' portfolios and channel credit to
\nprovincial areas in line with the government's regional policy of
\npromoting growth outside Bangkok.<\/p>\n
The plan should also increase domestic savings, the Bank of
\nThailand said, and among its measures was to grant five new bank
\nlicenses by April 1996 to local financial institutions.<\/p>\n
Conditions for the new bank licenses include locating the
\nheadquarters outside Bangkok. The new banks must have no
\nrelationship with existing banks in terms of shareholding or
\nmanagement, a Finance Ministry official said.<\/p>\n
They must be public banks with enough capital to ensure stable
\nand solid banking operations, the official said. The new banks
\nmust also have experienced management.<\/p>\n
In addition, seven existing foreign banks with full branch
\nlicenses in Thailand will be able to open two more branches each
\nby May 1996, one in Bangkok and the other in the provinces.<\/p>\n
They are Bank of Tokyo, Bank of America NT & SA, Citibank NA,
\nDeutsche Bank AG, the Hongkong & Shanghai Banking Corp. and
\nStandard Chartered Bank and ABN-AMRO Bank NV, said the official.<\/p>\n
The masterplan also provides for another five to seven full
\nbank licenses for foreign banks by May 1996, the official said.<\/p>\n
Foreign-registered companies owned or partly owned by Thais
\nwill be allowed to list on the Stock Exchange of Thailand in a
\nmove to promote the development of the Thai capital market as a
\nregional market, the bank said.<\/p>",
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