BWBB 3033 INTERNATIONAL BANKING

SESSION 2021/2022 (A212)

GROUP ASSIGNMENT

GROUP 7 (C)

SUBMITTED TO:

PROF. MADYA DR. AZIRA BINTI ABDUL ADZIS

PREPARED BY:

NAME NO. MATRIC

JASMINE YAP QIN YING 278412

NG SIAO WEI 278143

NURULAIN BINTI RAZALI 278136

NURUL EZZATY AYUNY BINTI AHMAD KAMIL 281193

NUR AIRENNA IDAYU BINTI MOHD AZARAII 278281

SUBMITTED DATE: 2ND JUNE 2022

 TABLE OF CONTENT

1.0 COUNTRY BACKGROUND 3

2.0 THE STRUCTURE OF FINANCIAL SYSTEM 5

3.0 THE STRUCTURE OF BANKING SYSTEM 10

4.0 MARKET PENETRATION 14

5.0 CONCLUSIONS 21

6.0 REFERENCES 23

2
1.0 COUNTRY BACKGROUND

Thailand was also known as The Kingdom of Thailand. Thailand was once known as
Siam, and this was the country's name until 1939. Thailand is known as the "Land of the Free."
This is due to the fact that Thailand has never been conquered by other countries such as Japan,
the United Kingdom, or Portugal. Thai was the name given to citizens of Thailand. Thailand has
many interesting places to travel such as Bangkok, the most popular place, Chiang Mai, and
Ayutthaya. The capital of Thailand is Bangkok.

Thailand is the most Buddhist country in the world. Based on the information from
(PopulationU, 2021), religion of Buddhists represent for 95 percent of the population, Muslim
represent for 3.8 percent. Christians represent about 0.5 percent and other religions represent
about 0.7 percent in Thailand. Thus, we can see many popular temples around Thailand. For
example, the popular temples in Thailand are Wat Arun in Bangkok, Wat Pho in Bangkok and
Four–Faced Buddha in Bangkok.

Thailand has a diverse ethnic population. The Thai ethnic group is the largest, followed
by Chinese, Malay, Burmese, Lao, and Khmer ethnic communities. Because Thailand has a
diverse ethnic population, the Thai government has identified Thai as the country's official and
national language. It is a tonal language with numerous dialects. The script was created in 1283
by King Ramkhamhaeng the Great of the Sukhothai Kingdom. Another two languages spoken
are Chinese and Malay. English is widely spoken and understood throughout the country and is a
necessary subject in high school.

Thailand, on the other hand, has its own unique event. Thailand's most well-known
celebration is the Water Festival. This festival attracts a large number of visitors to Thailand. The
annual Water Festival will take place from the 13th to the 15th of April, and visitors may join in
the festivities with Thais. They'll squirt individuals with water pistols, hose pipes, buckets, and
whatever else they can get their hands on. You may enjoy a pleasant party with Thais no matter
where you are in Thailand. Consider the Rocket Festival. The aim of the Rocket Festival is to
welcome and celebrate the arrival of rain. This festival will be held in May annually.

3
 From (International Monetary Fund World Economic Outlook, 2021), it shows that
Thailand's GDP is ranked number 26 in the world and number 9 in Asia. Thailand's economy is
strongly reliant on exports, with exports accounting for more than two-thirds of the country's
GDP. Based on the article from (Lawrence Pines, 2021), Thailand exports refined petroleum,
rice, rubber, diamonds and gold in large quantities. Based on the article from (Bamaejuri
Sohkhlet, 2021), Thailand's primary sources of revenue include the export and manufacturing
sectors, as well as tourism and agriculture.

From (Lists Club, 2021), Government Savings Bank, GH Bank, Bank for Agriculture and
Agricultural Cooperatives, Export and Import Bank of Thailand, Islamic Bank of Thailand, and
SME Development Bank of Thailand are Thailand's six local banks. In Thailand, there are about
19 international banks, including Bank of China Ltd, Citibank, HSBC, and RHB Bank Berhad.

2.0 THE STRUCTURE OF FINANCIAL SYSTEM

A financial system is a set of institutions that allow money to be exchanged, such as

banks, insurance firms, and stock exchanges. Besides that, the financial system also plays an
important role as an intermediary for capital mobilization and economic resource allocation, as
well as a payment and settlement service provider. A financial system could be defined at an
international or organizational level. In general, a financial system comprises 3 elements that is
financial institutions, financial markets, and payment systems.

2.1 Financial Institution

There are 2 types of financial institutions in Thailand, including deposit-taking financial

institutions and nonbank financial institutions.

4
 Table 1: Thailand: Financial System Structure

Sources: Bank of Thailand and Fund staff estimates

As of the year end 2018, total assets of financial institutions amounted to 43,389 trillion
baht. According to table 1, deposit-taking financial institutions played the most important role
with a share of 69%, while nonbank financial institutions had a share of 31%. Not only that, from
2007 to 2018, we can also see the total financial assets for deposit-taking financial institutions
decrease, which is a decrease of 6%. Meanwhile, total financial assets for nonbank financial
institutions increased by 6%.

The decrease in deposit taking financial institutions is due to the demand for deposits by
depositors. A demand deposit is money that is deposited into a bank account and can be
withdrawn at any time. The bank or financial institution may provide a low or no interest rate on
the deposit for money in the account. Despite that, in 2018, the financial crisis in Thailand
caused many people to withdraw large amounts of money from the bank. Withdrawals will result
in a drop in demand deposits and a reduction in the money supply, leaving banks with less
money to lend. This is proven when total financial assets bank, private bank, 3 largest private

5
banks, other privately owned, state-owned, foreign majority owned, subsidiaries and branches of
foreign banks are decreasing while specialized financial institutions and thrift and credit
cooperatives show increased because these institutions are raising funds from the capital market
in Thailand. However, total financial assets for finance companies and credit fonciers remained
zero and showed no increase or decrease.

Besides that, the increase in nonbank financial institutions is due to the broadened
monetary policy transmission. A nonbank financial institution (NBFI) is a financial institution
that does not have a full banking license and cannot accept deposits from the public while
broadened monetary policy has an impact on both the economy and the price of goods and
services. A change in the price of products and services is called inflation rate. Despite that, in
2018, nonbank financial institutions have created new hazards for monetary policy. On their
balance sheets, non-banks have taken on significant duration, liquidity, and credit risks.
Increased risk-taking, in turn, can lead to liquidity mismatches and affect non-bank financial
organizations' ability to absorb losses in a downturn, potentially generating a systemic risk and
impeding the transmission of monetary policy. This is proved when insurance companies, mutual
funds, securities companies increased, while asset management companies (AMCs) and others
are decreasing. Pension funds remain as 5.

2.2 Financial Market

6
 Figure 1: Thailand’s capital market structure

Sources: ADB, BOT, SETSmart

Financial market comprises banks’ loan, bond market and equity market. These markets
are known as money markets because the assets purchased and sold are often short-term which is
varying from a day to a year and it is easily convertible into cash. Bank loan is an amount of
money loaned at interest by a bank to a borrower for a set length of time, usually on collateral
security. Bank loans are divided into several parts such as personal loans, credit card loans, home
loans and others. According to figure 1, bank loans in Thailand recorded the highest percentage
of GDP starting from 80% in 2000 to 2002 then decreased in 2007 but fluctuated again until
2019, then bank loans became the second highest after the equity market until 2019. However,
overall, the bank loan percentage in Thailand was at level 60%-80%. This happens because if the
loan is not secured by collateral, the lender must rely only on the borrower's creditworthiness to
determine repayment prospects.

Besides that, equity markets are also known as a stock exchange in a trading platform for
financial instruments such as stocks and derivatives. For example, the equity market is a
financial market where investors can purchase and sell shares of publicly traded corporations.
According to figure 1, the equity market in Thailand recorded the lowest percentage starting
from 20% in 2000 to 2002 then increased dramatically by 80% in 2003. In 2004 until 2011, the

7
percentage of GDP in Thailand fluctuated 60% to 80%, while in 2012 until 2019, the equity
market became the highest percentage of GDP that is 80% until 100%. This is due to many
people wanting to buy a stock rather than sell it, so the prices become high.

2.3 Payment systems

A Payment system is any system or funds which are transferred among the banks and
other institutions to discharge payments and used to settle financial transactions. Thus, Bank of
Thailand (BOT) initiated a plan for a payment system in Thailand using BAHTNET Funds
Transfer, Cheque Clearing System, BAHTNET Securities Transfer and Retail Funds Transfer.

BAHTNET (Bank of Thailand Automated High-value Transfer Network) is a fund

transfer transaction processed by BOT that provides commercial banks, specialized banks, and
others through the BAHTNET system. Through BAHTNET, banks can make large value
payments using checks issued at the BOT with settlement within a day or two days.

Besides that, a cheque clearing system is the process of transactions of instruments such
as cheques, drafts, bills of exchange from one account to another to settle a check payment,
usually the amount is credited to the deposit account and the equivalent amount debited at the
bank. Cheque clearing systems were processed on 2 or 3 working days of local cheques while
outstation cheques took 3 until 8 working days.

8
3.0 THE STRUCTURE OF BANKING SYSTEM

According to Banking System: Definition & Types (2016), the banking system is a group
of entities that provide financial services to us. These companies are in charge of running a
payment system, lending money, accepting deposits, and assisting with investments. Banks are
also responsible to ensure they have enough capital funds to move the economy. As we all know,
banks act as intermediary parties between depositors and borrowers. Depositors will receive
interest payments when saving money into the bank while borrowers will apply for a loan and
repay the loans with interest.

Thai Financial Institutions Number

Depository Corporations

Commercial Banks 30

Specialized financial institutions 6

Saving cooperatives 1,995

Money market mutual funds 37

Non-depository Corporations

Mutual funds 1,376

9
 Insurance companies 83

Leasing companies 851

Credit card and personal loan companies 39

(including Nano finance)

Provident funds 380

Government pension fund 1

Asset management companies 52

Securities companies 47

Agricultural cooperatives 3,426

Pawn shops 660

TOTAL 8,983

Table 2: Number of Financial Institutions at Q3 of 2018

Sources: Thailand’s Financial Institutions (2018)

Bank of Thailand is the central bank of Thailand that started operations on 10 December
1942. According to Thailand’s Financial Institutions (2018), Thailand categorises their financial
institutions into 2 types which are Depository Corporations and Non-depository Corporations as
shown in the Table 2 above. The total number of Thailand financial institutions is 8983
institutions.

Financial Institution Act B.E. 2551 (2008) or known as FIB Act are used to regulate
banking systems in Thailand. Financial sector, apart from being regulated by Bank Of Thailand,
it's also regulated by the Ministry of Finance (MOF). Based on Table 1, it shows that only
commercial banks, specialized financial institutions, credit card and personal loan companies

10
(including Nano finance) and asset management companies are regulated under Bank Of
Thailand regulation and supervision.

According to FIB Act, Bank Of Thailand is responsible to approve the establishment of

the financial business group, its subsidiaries and the scope of business, approve the directors and
senior management of the group, supervise and examine the financial business group and require
the financial business group to submit data and reports.

Recently, according to Performance of the Thai Banking System in the First Quarter of
2022 (2022), it concluded that the Thai banking sector has remained robust, and is well poised to
meet credit demand and allow a sustainable economic recovery with strong levels of capital, loan
loss provision, and liquidity. Due to debt restructuring and financial assistance initiatives, overall
asset quality remained constant from the previous quarter. Meanwhile, the banking system's
profitability increased compared to the same period previous year, owing to increased loan
growth and greater interest revenue.

In the first quarter of 2022, Thailand's banking system capital fund had reached at 3,016.4
billion baht. Banking system also recorded a net profit of 49.4 billion baht, an increase of 11.8%
from the same quarter in 2021 due to the bank's operational costs being under control, and
provisioning costs being reduced. Even though pandemic Covid-19 has affected Thailand's
banking system since 2019, Thailand's banking system is still able to remain resilient and stable
in 2021 and show an increase in 2022. Due to debt restructuring and financial assistance
initiatives, banks' total loan quality remained constant in the first quarter of 2022, compared to
the previous quarter (Performance of the Thai Banking System in the First Quarter of 2022,
2022).

If recalled, Singapore, Thai Banks Likely Most Affected by COVID-19 in South-East Asia
(2020) mentioned that since Covid-19 outbreak all the world, Thailand banks have adequate loss-
absorption buffers to handle this pressure, however the severity and duration of the epidemic will
have an impact. At that time, Thailand has announced measures to relieve some of the strains on
asset quality and profitability that have been plaguing the country in recent months. Thailand
includes a one-year freeze on principal payments (moratorium) for tourism-related loans, as well
as debt relief measures for credit cards and personal loans.

11
4.0 MARKET PENETRATION

4.1 ADVANTAGES AND DISADVANTAGES OF MALAYSIAN BANKS

PENETRATE IN THAILAND MARKET

4.1.1 ADVANTAGES OF MALAYSIAN BANKS PENETRATE IN THAILAND

MARKET

Thailand's economy is the second largest in ASEAN after Indonesia's. Thailand is an

upper-middle-income country with an open economy, $529 billion in GDP, and 4.1 percent
annual growth in 2018. Thailand is also one of the world's most visited countries, and tourism is
vital to the Thai economy. Tourists visiting Thailand have helped the country's economic growth
and income. As a result, if Bank Malaysia wishes to enter the Thailand market, there are several
advantages.

12
 One of the advantages of Bank Malaysia in entering the Thailand market is the
establishment of cooperation between Malaysia and Thailand. Niqman Rafaee M.Sahar,
Matrade Trade Commissioner in Thailand, once stated that Thailand has a large population, with
69 million people in 2016. Similarly, Thailand has 77 provinces, this number represents an
opportunity for Malaysia, particularly Malaysian companies and financial institutions, to expand
its market in Thailand. Malaysia and Thailand are also close neighbors, and the two countries
have engaged in a variety of border trade activities. For example, Thailand and Malaysia have
collaborated in the trade of goods such as rubber, wood, rice, processed foods and others
(Bernama, 2016). Cooperation between the two countries in financial institutions can boost the
country's progress, economy and income.

Moreover, the advantage of Bank Malaysia in entering the Thailand market is the trade
problems between the two countries can be resolved in local currency. In 2015, Bank Negara
Malaysia (BNM) and Bank of Thailand (BOT) encouraged the private sector to use the ringgit
and baht to settle bilateral trade and direct investment. The two central banks have signed a
Memorandum of Understanding (MoU) on the establishment of the cooperation framework and
the agreement has been signed by BNM Governor Tan Sri Dr Zeti Akhtar Aziz and BOT
counterpart Dr Prasarn Trairatvorakul. They argue that this arrangement could reduce the risk of
exposure to global settlement currency fluctuations and could reduce transaction costs to the
business sector. This bilateral arrangement can improve the flow of trade and investment
between the two countries while also making the use of different currencies in the country easier
(Bernama, 2015).

Furthermore, providing financial services to the Malaysian community living in

Thailand is also one of the advantages of Bank Malaysia in entering the Thailand market.
Thailand is very close to several northern Malaysian states, particularly Kedah, Perlis, and
Kelantan. When Malaysian banks enter the Thai market and open bank branches there,
Malaysians living in Thailand will find it easier to access financial services provided by banks.
Malaysians living in Thailand for work, marriage, further education, and other reasons are
among those who wish to conduct their financial business dealings with Malaysian banks. The
community can save time and easily transfer money to family members in Malaysia.

13
4.1.2 DISADVANTAGES OF MALAYSIAN BANKS PENETRATE IN THAILAND
MARKET

However, there are some drawbacks if Bank Malaysia wishes to enter the Thai market.
As a result, before making a decision, Bank Malaysia must consult with various parties, think
carefully, and devise a long-term strategy.

One of the disadvantages of Bank Malaysia in entering the Thailand market is the high
competition among Thailand financial institutions. A financial institution is an important
intermediary for capital mobilization and economic resource allocation, as well as a provider of
payment and settlement services. As a result, an efficient and stable financial institution system
is critical for promoting long-term economic development. In Thailand, there are two types of
financial institutions, which are depository corporations and non-depository corporations.
Commercial banks, Special Financial Institutions (SFIs), and others are examples of depository
corporations, whereas non-depository corporations include mutual funds, insurance companies,
and others. According to table 3, there is a lot of competition in financial institutions in the third
quarter of 2018 (Thailand’s Financial Institutions, 2018). High competition will make it difficult
and risky for Malaysian banks to enter the Thailand market. Thai people will also prefer to use
the Thailand banks for financial transactions because they are familiar with their procedures.

Moreover, the disadvantage of Bank Malaysia in entering the Thailand market is a lack
of bank knowledge among employees and customers. Employees who want to work in a bank
abroad need to know the bank’s history, background, culture and information relevant to that
country. As a result, this issue is one of the challenges for Malaysian bank employees who lack
knowledge of Thailand's history and related banking issues in Thailand. Bank employees must
also be fluent in Thai so that they can easily communicate with members of the community who
want to conduct financial transactions. As for the community, they do not understand the
procedures carried out by foreign banks and the local community will also prefer to use local
banks compared to foreign banks.

Furthermore, the difficulty of opening bank branches in more strategic locations is

one of the disadvantages of Bank Malaysia in entering the Thailand market. Strategic location is
a very important aspect for a bank to enter a foreign country. Thailand has a larger land area than

14
Malaysia. As a result, Bank Malaysia is having difficulty deciding to open bank branches in
more strategic locations. Malaysian banks must also ensure that the chosen bank's location is
easily accessible to a large number of people. For example, Malaysian banks need to find a
location in an urban area because a strategic location makes it easier for the community to
conduct financial transactions. Malaysian banks also need to find locations in rural areas to open
branches. This is to make it easier and save time for villagers to conduct financial transactions
without having to travel to urban areas. Therefore, Malaysian banks must take the issue of
location into consideration.

Table 3: Number and Asset Size of Thailand Financial Institutions at Q3 of 2018

Sources: Thailand’s Financial Institutions (2018)

4.2 RISK AND CHALLENGES OF MALAYSIAN BANKS PENETRATE IN

THAILAND MARKET

15
 Is it possible for Malaysian banks to even get a foothold in Thailand's market ? The Thai
military imposed state of emergency as well as took control of the government in such a violent
coup in May 2014. Ever since coup, Thailand has already been steadily regaining to freedom. A
formal constitution was drafted on August 2016 and passed by a national referendum. The
current administration held general elections in March 2019. Thailand's market has grown stable
despite these political issues.

4.2.1 RISK OF MALAYSIAN BANKS PENETRATE IN THAILAND MARKET

On March 25, 2020, Thailand issued an Emergency Decree to reduce the risk of
transmission of the COVID-19 virus. The economic consequences was primarily felt in
Thailand due to the lockdown, social distance, and temporary closures of certain businesses
regarded to be health hazards. International travellers were subjected to quarantine, that is still in
existence, as well as airports remained closed for months. Health improvement regulations and
social distancing processes may present challenges to US businesses interested in doing business
in Thailand, which will endure until COVID-19 vaccines are widely available.

Both international and domestic vendors of products and services compete fiercely
in Thailand's sectors. The majority of domestic corporations are intergenerational family
organizations led by third-generation Corporate leaders who are intellectual, skilled, and also
have substantial industry expertise. Although Thai consumers are price concerned, local retailers
as well as low-cost foreign goods are regularly utilised. Exporters from the United States that
have goods that are relevant for reasons apart from cost must collaborate with a local partner and
develop a market entry strategy.

Almost 50 percent of Thailand's Most-Favored-Nation (MFN) tax routine has charges

below 5 percent and over 30 percent of customs duties, including several chemicals, electronics,
industrial machinery, including paper, were completely free.Thailand's average MFN relevant
tax rate in 2019 were ten percent. Thailand's average MFN application tax rate for agricultural
commodities was 29 percent in 2019, although non-agricultural products were taxed at 7 percent.
Thailand recently joined the World Trade Organization (WTO) for 75 percent of its import duties

16
with an overall WTO mandate tax rate of 28 percent. Many American items are still unable to
enter the Thai market due to high taxes throughout many industries.

4.2.2 CHALLENGE OF MALAYSIAN BANKS PENETRATE IN THAILAND

MARKET

Mostly in the early half of 1980s, Thailand's financial system experienced a crisis. The
stability of Thailand's financial firms' accounting records gradually deteriorated due to poor
management strategies and insufficient legislation as well as monitoring. A decline in economic
development in the early 1980s worsened the problems. Early in 1983, Thai regulators were
forced into meddling in the operations of roughly 50 credit and private businesses, as well as five
commercial banks, which together represented nearly one-fourth of Thailand's asset value.
Twenty four finance and security firms were terminated, while nine others were combined into
two new firms. 13 finance firms and five commercial banks continued to receive financial
assistance in the form of small lending.

The first challenge faced is getting the Thailand economy household out of the debt
trap.The government recognises that households as well as small business debt are serious issues
which have cast a cloud over the economy, therefore it has declared that it will needs to
concentrate this year on resolving the consumer credit crisis. Borrowing costs reached 14.3
trillion Baht in the second quarter of last year, amounting for 89.3 percent of GDP. Even
government officials, particularly teachers and police officers, are enslaved by debt. After
graduation, student loans must have been repaid. Small firms are still having difficulty obtaining
funding. Through extending debt repayment durations as well as reducing interest rates, the
Finance Ministry, the BOT, and state-owned banks have been pushed to undertake debt
reorganisation activities. Since the onset of COVID in 2020, commercial banks and banking
institutions have taken debt reduction measures.

Next challenge is appointing shareholders. In Thailand, an organization should have at

least three owners, with two Thai shareholders mandatory because international investors cannot
own the entire organization. Nevertheless, foreign investors may not have Thai trading partners,

17
and finding local investors to become shareholders for their corporation may be challenging and
hazardous.Considering Thai shareholders would receive the majority of the outstanding earnings,
users should choose a shareholder they can trust. By possessing preference shares, foreign
owners could gain ownership of the firm with minority shares. Preference shares entitle their
owners to participate in any annual general meeting and have the same, lesser or higher voting
power as regular shareholders. Whenever the price of the stock rises, preference shareholders are
entitled to receive dividends before ordinary shareholders.

Last but not least the third challenge is rising cost of living. Supply chain failure may
raise the cost of goods and services. Consumers have already been dealing with growing
operating costs as a result of higher expenses from new products and utilities. According to
Kasikorn Research Centre, a severe drop in meat supplies caused by a swine infection mixed
with pent-up demand has indeed driven meat costs higher 30 percent over last year, the greatest
in ten years. In the year, meat costs are expected to remain at 190 to 220 Baht per kilogramme.
The government recently declared actions to remedy the issue of growing living costs, including
paying swine farmers hit by African swine flu. Despite the central bank's decision to keep short-
term interest rates steady, bond rates indicate that long-term interest in the market has already
increased. If property developers issue corporate bonds to raise financing, their finance costs
may rise, which they may pass on to home buyers.

5.0 CONCLUSIONS

In conclusion, there are two types of financial institutions in Thailand which are deposit-
taking financial institutions and non-bank financial institutions. Deposit-taking financial
institutions is a firm that deals with financial and monetary transactions such deposits, loans,
investments and currency exchange. Non-bank financial institutions are financial institutions
without a banking license that provide a variety of financial products. In general, these banks are
not permitted to accept ordinary public demand deposits.

In the financial market in Thailand, the ratio of bank debt was between 60% and 80%.
This occurs since without collateral, the lenders must depend only on the borrower's

18
trustworthiness to estimate repayment chances. In the equity market, the trend of the equity
market in Thailand was up and down. However, in 2012 to 2019, the percentage of GDP shows
the percentage nearly 100% which is the highest percentage. This is because investors want to
buy stock rather than to sell it. Thus, the price will become higher. For the payment system,
Thailand launched BAHTNET Funds Transfer and BAHTNET Securities Transfer on 24 May
1995. Thailand also has used Cheque Clearing System and Retail Funds Transfer to make
payment.

In the structured banking system, the central bank in Thailand is The Bank of Thailand
(BOT) which began operations on December 10, 1942. The overall number of financial
institutions in Thailand is 8983. Financial Institution Act B.E. 2551 (2008), usually known as the
FIB Act, governs Thailand's banking industry. Besides being controlled by TOB, the financial
industry is also governed by the Ministry of Finance (MOF).

There are many pros and cons when Malaysian banks penetrate Thailand's market. The
benefit that Malaysian banks penetrate in Thailand’s market is the establishment of cooperation
between Malaysia and Thailand, the trade problems between the two countries can be solved in
the local currency and lastly is providing financial services to the Malaysian community living in
Thailand. For the disadvantages are high competition among Thailand financial institutions, a
lack of bank knowledge among employees and customers and the last is difficulty of opening
bank branches in more strategic locations. There are various risks and challenges in Thailand if
Malaysian banks are looking to break into the market. The risks that are pandemic Covid-19 due
to the country breakdown. The second risk is in Thailand's industries, both domestic and
international vendors of goods and services compete vigorously. The third risk is to preserve
local products, the Thai government imposes significant taxes. Next, the challenges of Malaysian
banks attempting to enter the market is getting the Thailand economy household out of the debt
trap, nominating a dependable Thai shareholders and Thailand's growing living costs.

19
6.0 REFERENCES

Banking System: Definition & Types. (2016, January 20). Study.com.

https://study.com/academy/lesson/banking-system-definition-types.html#:~:text=A
%20banking%20system%20is%20a%20group%20or%20network%20of
%20institutions,deposits%2C%20and%20helping%20with%20investments.
Bank of Thailand. (2020). Payment Systems. Retrieved May 26, 2022, from
https: //www.bot.or.th/English/Statistics/PaymentSystems/Pages/default.aspx

Bernama. (2015, Ogos 27). Malaysia, Thailand akan galakkan penyelesaian perdagangan
dalam mata wang tempatan. Astro Awani. https://www.
astroawani.com/berita-bisnes/malaysia-thailand-akan-galakkan-penyelesaian-
perdagangan-dalam-mata-wang-tempatan-71308?amp=1

Bernama. (2016, March 20). Syarikat Malaysia digesa manfaat peningkatan perdagangan
sempadan dengan Thailand. Astro Awani. https://www.
astroawani.com/berita-bisnes/syarikat-malaysia-digesa-manfaat-peningkat an-
perdagangan-sempadan-dengan-thailand-99263?amp=1

Demand Deposit - Overview, Types, and Importance. (2021). Corporate Finance Institute.
Retrieved May 26, 2022, from https://corporate
financeinstitute.com/resources/knowledge/finance/demand-deposit/

Dodd, R. (2020). What Are Money Markets? International Monetary Fund. Retrieved May 26,
2022, from https://www.imf.org/external/Pubs/ FT/fandd/basics/58-money-markets.htm

20
Financial Institution (FI). (2022, February 2). https://www.investopedia.com/
terms/f/financialinstitution.asp

Five Key Economics Challenge of 2022. (2022, January 13). Thai PBS World.
https://www.thaipbsworld.com/five-key-economic-challenges-of-2022/

Five common challenges when starting a business in Thailand. (2021, July 22). AccLime.
https://thailand.acclime.com/guides/starting-business-common -challenges/

International Monetary Fund World Economic Outlook. (2021, October 26). World GDP
Ranking 2021. Retrieved April 12, 2022, from
https://statisticstimes.com/economy/projected-world-gdp-ranking.php

Lawrence Pines. (2021, March 5). Thailand’s Economy: Learn How It Benefits From Rubber
and Rice Exports. Retrieved 4 11, 2022, from https://commodity.com/data/thailand/

Lists Club. (2021, May 9). List of All Banks in Thailand (Official Information). Retrieved 4 11,
2022, from https://www.listsclub.com/banks-in-thailand/

Nonbank Financial Institutions. (2013). https://www.worldbank.org/en/ publication/gfdr/gfdr-

2016/background/nonbank-financial-institution

Nonbank Financial Institution. (2022). World Bank Group. Retrieved May 26, 2022, from
https://www.worldbank.org/en/publication/gfdr/gfdr-2016/back ground/nonbank-
financial-institution

Performance of the Thai Banking System in the First Quarter of 2022. (2022, May 17). Bank of
Thailand. https://www.bot.or.th/Thai/PressandSpeeches/ Press/News2565/n2965e.pdf

PopulationU. (2021, 12 31). Thailand Population 2021/2022.

https://www.populationu.com/thailand-population

Schnabel, I. (2021, August 24). The rise of non-bank finance and its implications for monetary
policy transmission. European Central Bank. Retrieved May 26, 2022, from
https://www.ecb.europa.eu/press/key/date/2021/html/ ecb.sp210824~9ab47b501b.en.html

21
Singapore, Thai Banks Likely Most Affected by COVID-19 in South-East Asia. (2020, March 3).
FitchRatings. https://www.fitchratings.com/research/ banks/singapore-thai-banks-likely-
most-affected-by-covid-19-in-south-east-asia-03-03-2020

Thailand’s Top Industries. Thailand's Top Industries. (2021, July 22). Retrieved 4 11, 2022, from
https://internsinasia.com/blog/thailand%27s-top-industries

Thailand’s Financial Institutions. (2018). Bank of Thailand.

https://www.bot.or.th/English/FinancialInstitutions/FIStructure/THA_FI_Structure/Thai
%20Financial%20System%20Structure.pdf

Thailand - Country Commercial Guide (Market Challenges). (2021, August 15). International
Trade Administration U.S Department of Commerce. https:// www.trade.gov/country-
commercial-guides/thailand-market-challenges

22