Funding costs seen as priority for banks | Bangkok Post: business

BANKING

Banks will need to do a better job managing their funding costs at a time of plentiful liquidity and rising expenses stemming from expected higher levies to the Financial Institutions Development Fund (FIDF), says Tak Bunnag, executive vice-president of Bank of Ayudhya.

While commercial banks await details of the new FIDF levies, they face challenges on other fronts as well, said Mr Tak. These include the new Deposit Protection Agency rules, healthy loan expansion in the post-flood recovery period, and the impact of the euro-zone debt crisis on global financial markets.

Besides deposits, banks need to look for other sources of funds as part of their overall funding cost management.