Slow but sure for Bangkok Bank next year
Bangkok Bank will keep its conservative style next year in preparation for several risks and higher provisioning requirements, senior executive vice president Deja Tulananda said yesterday.
One core risk is the prospect of a global economic slowdown. Commercial banks will also face greater burdens in adding loan-loss reserves to comply with the Bank of Thailand's new accounting requirements. "Over the next two years, the bank will have to pay attention to new financial measures. Thus, we shall have to be more prudent on expansion and uphold our conservative style," Deja said. Complying with the new financial standards is likely to affect the bank's provisioning for doubtful loans, and because it will have to strengthen its loan-loss reserve, lending will be tight, he said. The country's largest bank has yet to conclude its 2007 business plan and loan-growth target. It recently said lending growth for this full year will be lower than its target of 5 per cent. The bank is also likely to be cautious in expanding its branch network. All branches are profitable, but it will focus on returns per branch and new branches will have to break even in three years. The bank opened its 714th branch and will open another one today. Next year it plans to open about 100 branches. Somruedi Banchongduang The Nation
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