Bangkok Bank branch opening expected in H2
Bangkok Bank, one of nine winners of restricted banking licenses, plans to open the new overseas branch in Yangon in the second half of next year.
It will be opened at the same time with a branch in Pakse in Laos, said executive vice president Chaiyarit Anuchitworawong.
This will follow a sub-branch in Shanghai's free-trade zone, and another in Phnom Penh, with both branches expected to open in the early part of the year.
To him, the bank, now the largest in Thailand by asset size, plans to open at least four additional branches next year.
Chaiyarit said the upcoming Asean Economic Community (AEC) would bring more opportunities for Thai businesses and multinational companies, which form the bank's strong customer base.
The Asean market will remain an attractive investment focus for companies over the next two to three years, therefore the bank has to ensure it has the right network in place to serve such a trend, even though it has already branches in some countries in the region, he explained.
In Pakse, the bank sees opportunity in the agricultural sector and transportation, as well as in the city being the trade hub of southern Laos.
In Myanmar, even though BBL has permission to operate a commercial bank, it is expected to take at least a further year after opening a branch to build up business, as the country's regulations are still a worry for potential investment.
“However, amid the unclear picture over investment regulation in Myanmar, this could be an opportunity for a Thai bank because investors will come to us to ask for assistance. The Myanmar authorities also want foreign banks to provide knowledge for developing the banking industry,” he said.
The bank has operated in Myanmar through a representative office since 1995. It is one of the nine foreign banks winning the licenses extended for the first time in decades. The other winners are Australia and New Zealand Banking Group (ANZ), Bank of Tokyo-Mitsubishi (BTMU), Industrial and Commercial Bank of China (ICBC), Malayan Banking (Maybank), Mizuho Bank, Overseas-Chinese Banking Corp (OCBC), Sumitomo Mitsui Banking Corp (SMBC) and United Overseas Bank (UOB).
BBL early next year will also set up a new business unit called AEC Connect, which will operate under its International Banking Division.
The unit will support Thai investors who want information about investment and trading in countries where the bank has a presence, said the executive.
AEC Connect is a proactive move by BBL to cash in on the expected increased activity abroad by Thai companies, he added.
The bank has set up three levels for AEC Connect, in line with the varying interests of its business customers.
For example, for clients that already know how to invest offshore, it will arrange investment trips, which will be centred on visiting BBL branches in the markets in question.
The bank will also host seminars overseas to help encourage investment.
The Bank of Thailand supports BBL's move, which will play a role in enabling all business players to prepare well for when the AEC comes into effect next year, Chaiyarit said.
