Thai banks see little impact from global rout

Thai banks see little impact from global rout

Thailand chief among top executives leaving troubled Credit Suisse

A Credit Suisse logo is seen on a branch in Geneva. The troubled Swiss lender has reached an agreement to borrow from the country’s central bank to shore up its finances. (Photo: Reuters)
A Credit Suisse logo is seen on a branch in Geneva. The troubled Swiss lender has reached an agreement to borrow from the country’s central bank to shore up its finances. (Photo: Reuters)

Local banks foresee only a small impact from the troubles facing Credit Suisse and some banks in the United States due to their low external exposures and strong capital positions, according to the Thai Bankers’ Association.

Thai lenders have worked closely with the Bank of Thailand on supervision to strengthen their positions, Kobsak Duangdee, secretary-general of the TBA, said on Thursday.

“They don’t have large overseas borrowing and their investment with those troubled banks is not much. So, an indirect impact is not big,” he added.

On Wednesday, Finance Minister Arkhom Termpittayapaisith said there had been no impact on Thailand so far from the US bank problems and that the government was ready to act should there be any impact on the country from the volatility.

In a related development, Credit Suisse is grappling with the departures of several senior executives in its Asia-Pacific equities business, including its Thailand chief, as worries about the bank’s financial health rattle global markets.

Pornchai "Chris" Prasertsintanah, head of equities for South Asia and country manager for Thailand, has decided to leave to pursue opportunities outside the bank, according to a memo seen by Bloomberg News. Nick Silver, co-head of equities for Asia Pacific and head of equities for Japan, is also leaving along with Jonathan Jenkins, head of equity sales for the region.

A spokesperson for Credit Suisse could not immediately be reached for comment. 

Credit Suisse CEO Ulrich Koerner is battling a crisis of confidence just days after the failure of the US lender Silicon Valley Bank prompted a selloff in financial stocks globally. The Swiss lender earlier tapped the Swiss National Bank for as much as 50 billion francs (US$54 billion) and offered to repurchase debt.

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