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Kasikornbank Forecast Thai 2013 GDP to Increase by 5 Percent Next Year

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Kasikornbank Forecast Thai 2013 GDP to Increase by 5 Percent Next Year

“We expect GDP to increase by 5 per cent next year. Our challenge for next year is to make the bank a strategic tool for sustainable economic development and to help all small customers and SMEs access financial resources more effectively,” chief executive officer Banthoon Lamsam said yesterday.

KBank targets non-performing loans at 2-3 per cent of its portfolio, which is a good level, he said.

“The global economy is still uncertain and faces the risk of slowing down, especially in the US, Europe and China, which have reported decelerating economic figures.”

He noted that China was preparing for a leadership change. “The US will also hold a presidential election and we have to wait and see what policies will come out after that.

“For Thailand, we don't think the Cabinet reshuffle will have any significant impact on the government's policies. And with the same policies, we expect the country's GDP to continue to expand,” he said.

KBank has signed an agreement with 19 Chinese banks, including the Export-Import Bank of China, to create the largest Sino-Thai factoring network. Under this collaboration, business loans will be offered to reduce international trade risks and assure importers and exporters of smooth and flexible business operations. Factoring transactions under this agreement are expected to reach Bt29 billion.

Banthoon said the growth of economic cooperation in Asia, particularly the Asean Economic Community in 2015 and Asean+3, would help stabilise Asian economic conditions.

Asean+3 is a pact of regional cooperation among the 10 Asean countries and China, South Korea and Japan. China is Thailand's top export market and second-largest trading partner, with two-way trade reaching Bt1.5 trillion last year.

Foreseeing the significance of fast-growing Sino-Thai trade and investment, KBank has developed international transactions and settlements for a more complete and diverse service, with the aim of enhancing its international trade solutions for importers and exporters, Banthoon said.

Among the 19 Chinese banks, |six are members of Factors Chain International. They are China Minsheng Banking, Ping An Bank, China Merchants Bank, Shanghai Pudong Development Bank, Bank of Shanghai and Baoshang Bank.

KBank and its Chinese partners have agreed to purchase trade receivables from one another and offer debt collection services from one another's trade receivables. This will create flexibility in business operations of sellers and buyers from the two countries. Other services including business loans will be offered, which will help reduce international trade risks and provide convenience for international trade operations.

The Sino-Thai factoring network |will boost KBank's market share in international trade service, while exporters will have more confidence in international trade undertakings with their counterparts and more flexibility in operations through business loans, Banthoon said.

Via – Nationmultimedia

 

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