A comparative efficiency study of Thai commercial banking sector (money market debt instruments offered to the corporate customers) : Thai vs foreign banks | |
| Author | Ullah, Muazzam Ikram |
| Call Number | AIT RSPR no.SM-94-54 |
| Subject(s) | Banks and banking--Thailand Banks and banking, Foreign |
| Note | A Research Study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | Finance and Banking play the role of a catalyst for the cogent growth of Economy. This study is a comparison of the Foreign Banks and Local Banks operating in Thailand's resonant Economy. Financial standing of Thailand is in an elaboration stage, and it is momentous to comprehend the efforts and the potential of the banks to strive the upcoming challenges. This study is based on the argument that the, local banks are under performing. To substantiate this argument, our research is divided into two parts. First part is the analysis of previous three years Financial statements which measures the substantial productivity ratios, to calibrate their performance. Second part consists of the qualitative analyses, which necessitate the personnel interviews from the pertinent executives. On the basis of this frame work we worked out the results. From the secondary data analysis we can deduce that, Foreign banks are performing better than local banks. Local banks are not as much efficient as the foreign banks. But there is one fact that local banks are less effected to the economic fluctuations. But as a whole Foreign banks are not only successful in sustaining their performance but also efficient to accommodate rapidly to the financial liberalization. From the Interviews I found the reasons of Foreign banks, performing better than the local banks. Which are basically due to the immense business around relative to their size. They are engaged in very secured businesses which attenuate the risk. Due to the lavish business available they are also able to filter down the most profitable businesses. Another objective of the research is to know the bank-corporate cash management relation ship. Information obtained from the interviews provides the clue, that corporate customers are not well aware of the unique cash management services adjacent to their needs. Banks are also not providing variety of instruments due to the inefficient Secondary market for these instruments. For the future prospects we can conclude that, when the secondary market will start it's functions there would be strong competition and there would be a need of differentiated products to attract the customers. As a whole from the next year 16 new banks will join the existing 15 banks. Which will jointly can reduce the local banks stake in the market. |
| Year | 1994 |
| 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) | Pandey, Indra M.; |
| Examination Committee(s) | Johri, Lalit M.;Gupta, Jyoti P. |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1994 |