BAY plans consumer-finance JVs in neighbouring countries
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Bank of Ayudhya, the fifth-largest Thai bank by assets, is keen to launch consumer-finance businesses in Laos, Cambodia and Myanmar before the Asean Economic Community (AEC) gets going in 2015, and plans to set up joint-venture companies in the countries.
The bank will form a joint venture in Laos to operate consumer-finance business including auto loans. Details of the JV will be announced in the second quarter, said BAY chief executive officer Janice Van Ekeren.
BAY currently has two branches in Laos. The new JV will operate separately, conducting only consumer-finance business, a segment in which Krungsri Group has expertise.
Van Ekeren said Laotians were familiar with BAY’s Krungsri Auto and Srisawad Ngern Tid Lor business units. The existing bank branches in Laos will focus on deposit mobilisation and lending, she said.
She added that the bank would upgrade its branches in Laos to be subsidiary companies within the second half of this year.
Van Ekeren said the bank was seeking a partner in Cambodia to set up a joint venture, based on the same model as the JV in Laos. Details of the JV in Cambodia will be known next year.
The bank is one of several Thai lenders looking for greater opportunities in Myanmar.
It is awaiting a licence from the Central Bank of Myanmar to open a representative office.
