Bangkok Bank (China), the Chinese operating arm of Bangkok Bank (BBL), is opening its fifth branch, in Chongqing, on the back of its potential as a local bank to support southwestern China's business community.
The BBL arm is also the only Thai bank operating in he country with a local bank licence from the Chinese government.
Chongqing was chosen because it is a large municipality and an economic hub of the Yangtze River.
BBL executive vice-president Chaiyarit Anuchitworawong said the new operating unit is aimed at helping the bank to extend financial services to customers and increase business opportunities in China's rapidly growing western region.
"The [Chongqing] branch marks a new level in the bank's strategy of expanding business to grow alongside its customers and further increase business opportunities in the western and southwestern regions of China," he said, adding that all BBL branches in China are in major economic zones.
Chongqing, with a population of 29 million, had gross domestic product (GDP) growth of 12.3% last year, worth 126 billion yuan (660 billion baht).
By comparison, China's GDP growth was 7.7% last year.
The region boasts more than 1,000 large production plants and last year attracted 5,300 large foreign investors with combined investment of US$10 billion or a total of $41.8 billion over the past five years.
Mr Chaiyarit said the Chongqing branch is focused on providing business loans and trade services.
These services include trade finance, cash management, currency exchange and international funds transfers.
The branch also provides yuan-denominated services covering a wide range of payments and deposits for foreign companies and customers.
This will provide BBL (China) with more capital to expand its loan portfolio.
The Chinese unit of BBL, Thailand's largest bank by assets, has extensive market expertise from its more than 20 years' experience of doing business in China, its familiarity with relevant laws and regulations, strong relationships with local government agencies and a solid customer base.
Suwatchai Songwanich is the chief executive of BBL (China), which has headquarters in Shanghai and branches in Beijing, Xiamen, Shenzhen and Chongqing.
BBL is the only commercial Thai bank with an extensive international branch network, now comprising 27 branches in 13 nations and territories.
Its first foreign branch opened in Hong Kong in 1954.
A representative office for China opened in Beijing in 1986, followed by its first Chinese branch in 1992, in Shantou.
All branches were subsequently transferred to BBL (China) after a licence was granted to set up a local bank in China in 2009.