The beginning of Thai banking
The founding of Siam Commercial Bank reflected Siam’s move toward financial self-determination in a colonial era
In the early 20th century, most banking services in Siam were controlled by foreign institutions. British, French, and Chinese banks managed international trade, customs, and lending—leaving little room for local economic autonomy.
The absence of a Thai-owned financial institution was seen as a critical gap in the kingdom’s modernisation efforts.
The push for a local bank
Prince Mahisara Rajaharudaya, brother of King Chulalongkorn, proposed the creation of a Thai-owned bank to reduce reliance on foreign financial actors.
The plan began cautiously in 1904 under the name “Book Club,” operating quietly to test public interest and build support. The idea was not only economic, but also symbolic—an effort to assert greater national control over monetary affairs.
From experiment to institution
In 1906, with royal approval, the “Book Club” was formally granted a charter to operate as Siam Commercial Bank—the first bank in Thailand established and run by Thais.
It provided basic banking services including deposits, loans, and currency exchange. The move signalled a significant shift in Thailand’s financial infrastructure: for the first time, a local institution could support domestic business without relying entirely on foreign intermediaries.
Setting a precedent
The bank’s first permanent branch, opened in 1910 in Bangkok’s Talat Noi area, became a hub for trade and financial activity.
Its establishment helped introduce formal banking practices to a population still reliant on informal credit systems. The success of this early institution laid the groundwork for broader financial development, including the founding of other local banks in the decades that followed.
