KASIKORNBANK Strategic Acquisition
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
30%
12
25.9%
9.7
9.8
25%
Months of Imports
w
8.6
8.9
17.6%
6
7.3
7.3
20%
6.6
16.6%
15%
CO
10%
3 months'
5%
India
0
Source: CEIC, KResearch (data as of March 2022)
International reserves / External debts (% Ratio)
0%
Indonesia Philippines Korea Malaysia Thailand Singapore
Indonesia South Korea Malaysia
100%
%
120
113.7
100
92.7
-89.0
80
69.7
60
41.8
40
31.7
23.1
20
0
India Indonesia Philippines Korea Malaysia Thailand Singapore
Source: CEIC, KResearch (data as of 2021)
1.3%
Philippines
13.7%
Thailand
0.7%
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
3.00
Fed Funds Rate -Lower Bound
Fed Funds Rate -Upper Bound
2.50
2.00
1.50
1.00
0.50
0.00
■3 months of imports
$ Billion
$ Billion
FX Reserves
300
300
Reserves backing banknotes
■ST external debt
■Net Forward Position
250
250
200
200
69.8
266.4
150
150
$298.8 Billion
$212.0 Billion
100
68.0
100
50
50
74.2
32.4
0
Source: BOT, KResearch
Last Update: May 5, 2022
0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
■Due to high inflationary pressures, the Fed decided to raised
its policy rate to 0.75-1.00% in May 2022
■Monetary easing leads to a massive exodus of capital from
emerging markets and worsens exchange rate depreciation.
However, Thailand's external stability will likely be
maintained
■The Thai banking system excess liquidity fell slightly. The
CAR was good (19.62% as of February 2022) and NPL ratio
was still manageable (3.12% as of 4Q21), with net profits of
Bt168.1bn in 2021
Excess liquid assets in Thai commercial banks slightly rose
Million Baht
5,000,000
%LCR
200
191.3 190.2
187.8
183.5 184.7
190
4,000,000
176.9
178.1
180
173.8
3,000,000
170
2,000,000
160
2016 2017 2018
Liquid Assets.
2019 2020
2021 Jan-22 Feb-22
LCR (%)
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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