N American banks eye tie-ups with KTB

Vorapak Tanyawong, president of KTB and former head of several foreign banks in Thailand, said yesterday that the US-sponsored Trans-Pacific Strategic Economic Partnership Agreement (TPP) would promote collaboration between local and foreign banks rather than lead to obstruction.

The government plans to negotiate with the US on joining the TPP during President Barack Obama’s visit to Thailand.

Vorapak said foreign banks should seek a local bank with a large branch network to help strengthen their products.

KTB has deep capital and a wide network, so it should be considered as a potential partner.

KTB has 1,066 branches nationwide.

For a foreign bank with only one full-operation branch in Thailand, the networks of Thai banks could help broaden the marketing of potential products to investors of the foreign banks.

North America-based banks in Thailand recently asked him about cooperating.

KTB is also interested in buying the products of foreign banks, such as cash management, treasury products and e-banking, to further develop its own products.

Collaboration would also drive fee income. Non-interest income at KTB is nearly 30 per cent.

Expanding fee-based income is one of the priorities of Vorapak, who was appointed as president on November 8.

However, the form of collaboration will become clearer after next Thursday because he has to present the business plan to the board.

KTB will focus more on the Indochinese market by using its branches in border provinces and its network in Indochina to support Thai corporate customers.

The bank has a strong network in Indochina and it will open its latest representative office in Myanmar next month, he added.