Siam Commercial Bank Set to Launch Myanmar Unit
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Thailand’s third-largest lender has received preliminary approval to operate in the Southeast Asian nation of 54 million people.
SCB will be allowed to open up to 10 branches in the business area with an initial focus on Thai clients with investments in the country, according to Reuters report citing chief executive Arthid Nanthawithaya, who said the bank already had over 100 existing business clients across consumer goods, energy and agricultural sectors.
Nanthawithaya said the bank will aim to boost its loan assets to 7 billion baht ($210 million) by 2024. After 2021, SCB will also be able to enter the retail market in Myanmar, offering personal loans and wealth management services.
Not unlike to its Thai banking rivals, SCB has been expanding to widen its regional network with a presence in six other markets including Laos, Shanghai and Singapore. The move to launch in Myanmar follows recent news of Bangkok Bank’s acquisition of a controlling stake in Indonesia’s PT Bank Permata for $2.7 billion in December last year.
Questions & Answers
Q.What is the initial focus of SCB's operations in Myanmar?
What is the initial focus of SCB's operations in Myanmar?
SCB will initially focus on Thai clients who have investments in Myanmar. The bank already serves over 100 business clients in sectors like consumer goods, energy, and agriculture.
Q.How many branches will SCB be allowed to open in Myanmar?
How many branches will SCB be allowed to open in Myanmar?
SCB has received approval to open up to 10 branches in the business area of Myanmar. The bank's CEO, Arthid Nanthawithaya, confirmed this expansion.
Q.When will SCB be able to offer retail banking services in Myanmar?
When will SCB be able to offer retail banking services in Myanmar?
SCB will be allowed to enter the retail market in Myanmar after 2021. This will enable them to offer personal loans and wealth management services to individuals.
Q.What loan asset target has SCB set for its Myanmar unit?
What loan asset target has SCB set for its Myanmar unit?
SCB aims to boost its loan assets to 7 billion baht, equivalent to $210 million, by 2024. This target was stated by chief executive Arthid Nanthawithaya.
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