Bank of China wants to establish a Thai subsidiary that would allow it to expand to as many as 20 branches, up from the current limit of five.
Pan Xinyuan, assistant general manager of Bank of China's Bangkok branch, said the Bank of Thailand's new rules let foreign banks set up a subsidiary to branch out their business.
The application process is expected to take about a year, after which time the expansion to 20 branches would begin immediately.
According to the Bank of Thailand, Bank of China is one of two foreign banks that have applied to set up a Thai subsidiary company.
The move is part of Bank of China's strategy to aggressively expand into retail clients with a focus on credit and debit cards.
Meanwhile, Bank of China is trying to maintain mortgage loan clients amid fierce competition in Thailand, offering the minimum lending rate minus 1% for the first two years and cutting further to MLR minus 2% from the third year on, said Phonpimol Pathomsak, head of personal credit at the Bangkok branch.
The offer is intended to stand apart in a market where most offer low rates for the first few years and increased rates in later years.
Bank of China said the campaign will let housing borrowers pay loan instalments of 6,400 baht per 1 million baht borrowed, lower than the typical 7,000 baht.
"This campaign will accelerate their decision-making," said Ms Phonpimol.
The bank is aiming at middle-to-upper-income earners, with a target of 5 billion baht in mortgage loans over the next three years.
"We are confident in Thailand's economy and the great potential of the country as the centre of the Asean Economic Community," she said. "We are not concerned about high household debt because we target those who earn at least 40,000 baht a month."
Mortgage loans are the branch's latest product, aside from about 20,000 credit and debit cards.
About the author
- Writer: Darana Chudasri
Position: Business Reporter