KBank's Strategic Acquisition in Muang Thai Group Holding
K
KASIKORNTHAI
ธนาคารกสิกรไทย
开泰银行 KASIKORNBANK
Thailand's external balances remain relatively strong compared to peers
International reserves / Imports (Import Coverage)
Low foreign holding ratio in Thai government bonds
Months of Imports
%
12
9.4
9.4
25
8.7
8.4
8.0
7.2
6.2
9
3
22.4
15
3 months
2050
19.1
14.9
10
0
India Indonesia Philippines Korea
Malaysia Thailand Singapore
Source: CEIC, KResearch (data as of February 2023)
International reserves / External debts (% Ratio)
% 120
100
81.2
80
60
40
31.3
20
0
India
74.0
60.0
40.5
97.9
100%
15.1
Indonesia Philippines Korea Malaysia Thailand Singapore
Source: CEIC, KResearch (data as of December 2022)
Indonesia
South Korea
Malaysia
12.7
2.3
Philippines
Thailand
0.5
Vietnam
Note: Retrieved from Asia Bond Online, based on latest available data
Source: Asian Development Bank
■Thailand's economy and financial markets are able to
withstand impacts from fluctuations in global liquidity due to:
■High import coverage (international reserves/monthly
imports) compared with the IMF's three month import
coverage guideline
■More than 100% of external debt covered by
international reserves
■Low portion of foreign holdings in Thai government
bonds compared with other countries
บริการทุกระดับประทับใจ
K
KASIKORNTHAI
ธนาคารกสิกรไทย
开泰银行 KASIKORNBANK
Monetary and fiscal expansion raises financial stability concerns
In contrast with the Fed, the BOT has maintained interest rate
to support the economy amid COVID-19 outbreak
Thailand has enough FX reserves
to meet all internal and external obligations
BOT Policy Rate
FX Reserves
■3 months of imports
Fed Funds Rate -Lower Bound
Net Forward Position
$ Billion
6.00
Fed Funds Rate -Upper Bound
5.00
$ Billion
Reserves backing banknotes
■ST external debt
300
300
$252.1 bn
$245.8 bn
250
250
4.00
% 3.00
200
200
75.7
150
216.6
223.4
150
$224.17 Billion
68.4
2.00
100
100
50
50
1.00
80.1
0
29.2
2022-end
28.6
0
0.00
April 2023
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23
Sources: BOT, Federal Reserves and KResearch (as of May 2023)
Source: BOT and KResearch
Last Update: May 5, 2023
161
Excess liquid assets in Thai commercial banks slightly rose
5,000,000
■Due to high inflationary pressures, the Fed decided to raised Million Baht
its policy rate to 5.00-5.25% in May 2023
■Monetary easing leads to a massive exodus of capital from
emerging markets and worsens exchange rate depreciation
in 2022. However, Thailand's external stability will likely be
maintained
%LCR
200
192.5
187.7
189.5 190.4
183.5
184.7
190
4,000,000
176.9
178.1
173.8
180
3,000,000
170
160
2016 2017
2018
2019
Liquid Assets
2020
-LCR (%)
2021
2022 Jan-23 Feb-23
■The Thai banking system excess liquidity rose slightly. The 2,000,000
CAR was good (18.75% as of February 2023) and NPL ratio
was still manageable (2.73% as of 2022), with net profits of
Bt210.1 billion in 2022
Note: BOT has imposed the Liquidity Coverage Ratio (LCR) Framework which replaces the maintenance 6% reserve
requirement. Regarding the LCR framework, all banks shall maintain high-quality liquid assets not less than net expected
cash outflow over the next 30 days. The LCR was implemented on January 1, 2016, with the minimum requirement set at
60%, rising in equal annual steps of 10 percentage points to reach 100% on January 1, 2020
บริการทุกระดับประทับใจ
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