TMB maintains its growth target

TMB has a clear strategy of focusing on transactional banking, namely cash management and trade finance, he said.

Even if economy fluctuates in the second half of the year, attractive interest rates for fixed-deposit accounts will maintain the customer base, he said.

Doubts over the US quantitative-easing policy will make the exchange rate volatile. TMB has a promotion to help businesses, particularly small and medium-sized enterprises, cope with such uncertainties, he said, adding that the end of QE means recovery of the world economy, which is good for Thai exporters but negative for financial liquidity.

The outflow of foreign funds will not influence financial liquidity at the moment as these funds were mainly in bonds and stocks, Boontak said. However, enterprises have to be cautious because there are signals that Thailand will see tight liquidity in financial markets in the near future. 

As the global economy recovers, the amount of capital available for borrowers is decreasing. Another factor is the side effects of giant government projects. In the past 10 years, savings were greater than investment. However, that situation can reverse quickly. Savings have declined from 5 per cent of gross domestic product to 1 per cent now. He suggested that firms seek more long-term funding, arguing that although the cost is higher, the ability to manage liquidity will offset disadvantages.