| Author | Pramuan Bunkanwanicha |
| Call Number | AIT RSPR no.SM-97-9 |
| Subject(s) | Asset-backed financing--Thailand
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-97-9 |
| Abstract | Securitisation takes root in Asian emerging markets as a new financial tool for financial
institutions and corporations to achieve a variety of objectives. In Thailand, securitisation is
becoming a significant method of financing for financial institutions to satisfy their funding
requirement. However, it is still an expensive choice and time-consuming process.
So far, all securitised transactions in Thailand have been backed by the auto loan receivables.
They were introduced off-shore, in the European and the US markets rather than the local
market. The prominent deal, Thai Cars, is included in the study. In addition, the case study of
NORIA2 is also presented. Both case studies have been used to draw a comparison of
securitisation process which have taken place in the different environments.
There is no specific law and regulation for securitisation in Thailand. Therefore, many
problems are faced in structuring the deal. Nevertheless, the Thai government is formulating
the "Securitisation Act" and hopefully will implement it soon. This would facilitate and
encourage the further development of the market. However, the taxation issues especially the
value added tax of 7% and withholding tax are still major obstacles.
The prospects for the future market development will depend on many of factors, both from
the demand and supply side. The originators should improve their quality of asset portfolios
while the investors should prepare and diversify their portfolio of investments. However, even
though the study shows that the asset-backed securities market will not develop significantly
in the near future unless the legal and regulatory framework has not been put in place; it is still
an expensive method of funding andthe local debt market has not developed enough. |
| Year | 1997 |
| Corresponding Series Added Entry | sian Institute of Technology. Research studies project report ; no. SM-97-9 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Gupta, Jyoti P. |
| Examination Committee(s) | Jain, Pramod K.;Swierczek, Fred W. |
| Scholarship Donor(s) | European Community |
| Degree | Research studies project report (M.BA.) - Asian Institute of Technology, 1997 |