Title: The structural model of competition in the Thai banking industry

Authors: Jarunee Wonglimpiyarat

Addresses: National Innovation Agency, Ministry of Science and Technology, 73/1 Rama VI Road, Bangkok 10400, Thailand

Abstract: This paper presents the structural model of competition in the Thai banking system. The increased competition after the financial crisis has made it necessary for Thai banks to adapt and improve all their operations. In the past ten years, the structure of the Thai banking system has changed from the model of domestic banks dominating the industry, to the model of foreign ownership of Thai banks. Today, the higher degree of competition in the banking industry is a result of (1) the rise of non-banks in retail banking (particularly credit card and personal loan businesses) and (2) the heightened competition from foreign banks. The study presents the case studies of Bangkok Bank and Standard Chartered Nakornthon Bank, which are the market leaders in the Thai banking industry and have undergone structural changes to serve increasing competition. The findings suggest forward-looking strategies to develop an efficient financial service industry.

Keywords: banking industry; competition; non-banks; risk management; strategies; structural changes; Thailand; foreign ownership; retail banking; credit cards; personal loans; foreign banks; financial services; structural change; organisational structure.

DOI: 10.1504/IJFSM.2008.022551

International Journal of Financial Services Management, 2008 Vol.3 No.3/4, pp.255 - 268

Published online: 14 Jan 2009 *

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