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September 18, 2005
Wolf to Piglets: Naught to Fear
Citigroup regional CEO Robert Morse wants Thailand to liberalize its financial system further to allow more foreign participation, but says that local banks have nothing to fear from increased competition.
The Bangkok Post reports:
''Financial services companies compete at the level they have to compete,'' Mr Morse said in a recent interview in Bangkok.
''If you look at the past history around the world, the concern that local companies can't compete has proven mostly unfounded.''
''I don't think local firms give away anything to foreign institutions,'' Mr Morse said, as the headquarters of Bangkok Bank, the country's largest, looms in the skyline. ''If there was more competition, I believe that Thai companies would offer a positive surprise.''
This has been mostly the case in Thailand, where DBS, Stanchart, and UOB have failed to make much of an impact, and HSBC saw its bid to purchase the feculent Bangkok Metropolitan Bank rejected during the post-crisis fallout period.
Citibank, however, has been much more successful in positioning its retail brand and high-end corporate services in Thailand, and now employs some 2000 people despite its single-branch status.
Posted by The Banker at September 18, 2005 05:06 PM
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