Krung Thai Bank to expand in Myanmar, Vietnam

Krung Thai Bank believes that it will have enough financial muscle to serve non-Thai customers such as state agencies in Myanmar and Vietnam.

The bank expects the planned capital hike from Bt57.6 billion to Bt72 billion to provide financing for an expansion.

"The bank wants to expand its business in the Asean Economic Community via branches rather than representative offices to offer a full range of financial services, not just currency services," Kittiya Tsodhanakasem, a senior executive vice president at KTB, said yesterday.

In Myanmar, KTB is opening a representative office, but wants to upgrade it into a branch when regulations there permit it.

The Central Bank of Myanmar is expected to amend its regulations to allow foreign banks to set up branches because it is studying the financial regulations in the region.

KTB is applying for a branch licence to the State Bank of Vietnam, that country's central bank.

It has set up a representative office in Vietnam but the political situation there does not appear to support the banking business, Kittiya said.

"When the central bank of Vietnam gives a licence to KTB, the bank will go ahead with setting up the branch," she said.

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