KBank Subsidiaries and ASEAN Economic Strategy slide image

KBank Subsidiaries and ASEAN Economic Strategy

K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Banking Institutions are Main Intermediaries for Transactions in Thailand E-payment Volume E-payment Value Million Transactions Trillion Baht 10,000 8,985.1 (+47.7%) 450 9,000 400 8,000 350 327.7 (+15.8%) 339.4 (+3.6%) 375.0 (+10.5 %) 408.2 (+8.9%) 282.9 7,000 6,084.0 (+44.9%) 300 266.3 (+6.2%) (+5.5%) 6,000 4,743.2 250 4,199.9 5,000 (+43.7%) (+31.0%) 3,205.3 4,000 2,286.1 3,000 (+12.8%) 2,589.8 (+23.8%) (+13.3%) 3,301.8 (+50.1%) 200 188.2 166.1 (+13.3%) (+6.9%) 150 100 2,000 1,000 50 0 0 2014 2015 2016 2017 2018 2019 5M19 5M20 2014 2015 2016 2017 2018 2019 5M19 5M20 Notes: Volume and value of electronic payment transactions reported by e-Payment service providers, including banks and non-banks, under the Royal Decree Regulating on Electronic Payment Services B.E. 2551 (2008). Channels shown in graphs are; 1) BAHTNET 2) Bulk Payment including direct credit, direct credit, and ITMX Bulk Payment (SMART) 3) Interbank Funds Transfer (Online Retail Funds Transfer: ORFT) including ATM, internet/ mobile phone, and counter 4) Inhouse Funds Transfer including ATM and internet/mobile/ telephone 5) Payment cards including debit card and credit card 6) e-Money Sources: BOT บริการทุกระดับประทับใจ 117 K KASIKORNTHAI Regulations Update Capital (Basel III) ■D-SIBS* Buffer: Currently, D-SIBS are required to maintain a D-SIBS Buffer at 1% ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK BCBS has finalized the new requirements on risk weighted asset (RWA) calculations including credit risk, operational risk, and CVA risk. The main objectives of the revision are to reduce variability in RWA across banks and jurisdictions and to balance simplicity and risk sensitivity of capital requirements Financial Sector Master Plan II (FSMP II) Year 2010-2014: BOT's FSMP II consists of three key policies: 1) Reducing system-wide operating costs; 2) Promoting competition and access to financial services; and 3) Strengthening financial infrastructure, including market liberalization, which will increase access by foreign financial institutions via granting licenses in some business areas as well as permission to increase number of branches and ATMs Year 2014-2015: BOT established a licensing framework for new types of business operations for specific underserved markets, i.e. Nano-finance Financial Sector Master Plan III (FSMP III) 22 Mar 2016: Cabinet approved FSMP III (2016-2020), with aims to establish strategic framework for continuous financial sector development and ensure challenges arising from the changing environment will be effectively managed Overall: FSMP III comprises four main initiatives: 1) Promote electronic financial and payment services as well as enhance efficiency of Thai financial system; 2) Support regional trade and investment linkage; 3) Promote financial access; and 4) Develop relevant infrastructure 1Q17: BOT adopted the 'regulatory sandbox' which allowed regulatory flexibilities to be granted to financial institutions and FinTech companies to experiment with FinTech businesses with plans to grant a new license for P2P lending players ➤Impacts on Thai banks: Move toward further liberalization and digitalization, along with enhanced competition from FinTech and non-bank companies ➤Impacts on KBank: Ability to maintain competitiveness over both existing and new players, helped by an effective customer-centric strategy and preparation for a changing environment Thai and International Financial Reporting Standards (TFRSS / IFRSS) Year 2020 onwards: Timeframe was specified by Thailand Federation of Accounting Professions (TFAC); TFRS 9 (Financial Instruments) and TFRS 16 (Leases) became effective in 2020; TFRS 4 (Insurance Contracts) will be changed to TFRS 17 and will be tentatively effective in 2024. ➤ Expected impacts on Thai banks: For TFRS 9, expected credit loss is a significant issue due to economic uncertainty from COVID-19 outbreak. For TFRS 17, it will be more transparent and easier to compare financial performance from insurance business. ➤ Expected impacts on KBank: For TFRS 9, Bank's expected credit loss is still based on prudence basis following both TFRS 9 and BOT guidelines. Impacts resulted from TFRS 17 is still under investigation. *Note: D-SIBS Domestic Systemically Important Banks Source: The Bank of Thailand and KResearch บริการทุกระดับประทับใจ 118
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