Foreign banks given greater presence in Thailand
The Bank of Thailand announced a historic move Thursday, allowing foreign bank branches to upgrade themselves and operate up to 20 branches nationwide.
It marked the first time that foreign banks can set up subsidiaries in Thailand. This is a further move to liberalise the financial secctor, accordingly to the second phase in the Financial Sector Master Plan, jointly drawn by the Ministry of Finance and the central bank, according to Thongurai Limpiti, an assistant governor.
Under the new rule, foreign banks can operate upto 20 branches and 20 off-premise ATMs.
Since March 2010, foreign banks have been allowed to open two more branches. The maximum number of their branches in Thailand was then three before the clearance announced today.
The MOF has approved the move which takes effect today, Thongurai said.
Foreign banks have long sought for the permission, which came when banks in Europe are concentrating operations at home in light of debt crisis.
