FIFA WORLD CUP 2018 Kata Rocks
Login | Create Account Poll Currency Weather Facebook Youtube Search

State banks urged to support more SMEs

BANGKOK: Deputy Prime Minister Somkid Jatusripitak is urging state-owned banks to play a more aggressive role in supporting small and medium-sized enterprises (SMEs).

economics
Agency: Bangkok Post

Tuesday 7 November 2017, 11:16AM


Somkid: State banks can do more

Somkid: State banks can do more

“We can’t ask commercial banks to help SMEs as they carry risks and don’t contribute much to banks’ profits, but state-owned banks have been set up for this purpose and should be able to do more,” he said.

State-owned banks should improve their operations and work harder to support SMEs, including startups, which are an important engine for the economy, said Mr Somkid.

These state-run banks include the Small and Medium Enterprise Development Bank of Thailand (SME Bank), the Government Savings Bank (GSB) and the Export-Import Bank of Thailand (Exim Thailand).

“I’ve already discussed a major restructuring of SME Bank with the finance minister to better serve SMEs,” he said.

SME Bank needs more human resources, technology and a new management approach to access more small businesses, said Mr Somkid.

He said GSB already helps SMEs but the number remains low when compared with the bank’s overall business.

In other countries, banks that best serve SME operators are local small and mid-sized banks as they cannot compete with larger operators in extending loans to corporate clients.

“These local banks offer savings and loans to SME customers as their branch networks are expansive and they have enough staff to provide loans,” said Mr Somkid.

Both GSB and SME Bank should work together to better support SMEs nationwide, he said.

QSI International School Phuket

SMEs have suffered from the sluggish economy and have gained little from the country’s economic recovery and robust export growth. The government is pushing efforts to help them to bring about a broader-based economic recovery.

He said Exim Thailand should pay attention to helping SME customers expand their business into other markets instead of extending loans to exporters.

“Bank profitability should not be in their KPIs [key performance indicators]. They should instead focus on helping SMEs develop,” he said.

Mr Somkid said he has discussed creating incentives for commercial banks to assist SMEs with Bank of Thailand Governor Veerathai Santiprabhob.

The Bank of Thailand and the Thai Bankers’ Association (TBA) should create a comprehensive programme to promote better management of SMEs and new entrepreneurs.

Mr Veerathai said the central bank has been working closely with commercial banks to help SMEs.

The Bank of Thailand, in collaboration with the TBA, the government and state-owned financial institutions, recently launched foreign exchange options with lower fees for SMEs.

 

Read original story here.

 

 

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

Comments Here:
Comments Left:
# Characters
Username:
Password:
E-mail:
Security:

Be the first to comment.

Have a news tip-off? Click here

 

Phuket community
Phuket marine safety goes on show, efforts to recover last Phoenix disaster body continue

The governor did put on his marine safety face, coz that day there was on Phuket no volunteer cleani...(Read More)


Phuket marine safety goes on show, efforts to recover last Phoenix disaster body continue

And it also looks like all the bright orange "life vests" are the same toy flotation aids ...(Read More)


Phuket marine safety goes on show, efforts to recover last Phoenix disaster body continue

"The government's efforts to overhaul safety measures across all forms of transport".....(Read More)


Call to expedite Prawit probe

Of course the dealers have the right to refuse to disclose the ownership information, it's priva...(Read More)


Phuket marine safety goes on show, efforts to recover last Phoenix disaster body continue

"Chinese tourists often spend 20,000 baht per person" the real problem economically is tha...(Read More)


Phuket Opinion: The deadly face of shame

GR8 article as it simply says it as it is, something a few posters on here should wake up to! This l...(Read More)


Phuket marine safety goes on show, efforts to recover last Phoenix disaster body continue

"Mr Kongkiat said the Phoenix disaster would affect Chinese tourists for the next three months ...(Read More)


Phuket marine safety goes on show, efforts to recover last Phoenix disaster body continue

Red in BKK-Post that some thai authorities now said that the disaster vessels were sub standard. How...(Read More)


Last body from Phuket tour boat disaster recovered, brought ashore

Huge respect to all those involved in the rescue and recovery operation, must be horrendous for ever...(Read More)


Phuket tour boat disaster: Wave of cancellations spurs damage-control offensive

Mandatory pics to ID your corpse is really not thought out well, IMO....(Read More)