Kasikornbank (KBank) is offering trade finance service at its two Chinese branches to prepare for heavier trade between the mainland and Asean.Thailand's fourth-biggest lender by assets opened a second branch in Chengdu last week.
Trade finance service is available only in dollar terms at the newest branch, while both dollar and yuan service is offered at the branch in Shenzhen, open since 2008.
Trade between Asean and China has remained strong as Western economies have faltered. The nearing of the Asean Economic Community (AEC) in 2016 has also spurred a surge in regional trade.
Chairman Banthoon Lamsam said the opening of the Chengdu branch is part of KBank's Asian strategy to promote Thailand as a hub connecting western China and Asean.
The new branch offers services for small and mid-sized businesses in China and supports trade and investment in Thailand, China and the AEC.
While considered a second-tier city in China, Chengdu has growth potential and suits KBank's mission in the country.
Chengdu is the capital of Sichuan province, China's eighth-biggest GDP contributor and a transport and logistics centre for western China.
Import-export volume in Sichuan totalled US$15 billion in 2012, up 42% year-on-year. In 2011, Thai trade volume with Sichuan was $381 million, dwarfed by $15.57 billion in trade with Shanghai, China's commercial capital.
KBank aims to expand the loan portfolio of its Shenzhen branch to 2.2 billion yuan this year, up from 1.3 billion last year. For the Chengdu branch, it seeks 180 million yuan.
Bank of Thailand assistant governor Salinee Wangtal, who attended KBank's Chengdu branch opening, said Thai banks have greater opportunity to gain approval from Chinese regulators for expansion in second-tier cities because of the economic benefits.
She said the four biggest local banks are gearing up for regional expansion, especially in China and Asean, and the central bank is keen to support them.