Abstract
During the 1990’s, two simultaneous phenomena had converged, greatly changing the financial services industry in Thailand. At the national level, Thai banks had to restructure in response to the financial reforms implemented as a result of the financial crisis of 1997. At the global level, large multinational banks were taking advantage of worldwide, financial deregulation and rapid technological advances by offering a full range of financial products and services in order to fiercely compete, both domestically and globally. Using quarterly financial time-series data of domestic and foreign banks in Thailand from 1997 to 2003, this paper seeks to analyze the cause of their efficiency. The findings indicate that both the efficiency ratio and loan loss provisions influenced the negative performance of domestic banks, while only loan loss provisions had negatively influenced the performance of foreign banks.
Highlights
Since the Asian financial crisis ten years ago, two simultaneous phenomena had converged to greatly change the financial services industry landscape, both at the regional and global level
The six, key variables calculated from the raw time-series data to be used in this study are: return on assets (ROA), return on equity (ROE), total assets, efficiency ratio, the Tier1 capital, loan loss provisions, and non-interest income
Foreign banks perform better than domestic banks in terms of total income and pre-tax profit, even though foreign banks had higher operating costs and loan loss provisions
Summary
Since the Asian financial crisis ten years ago, two simultaneous phenomena had converged to greatly change the financial services industry landscape, both at the regional and global level. Major players in the global financial services sector have continued leveraging advances in telecommunications and information technology, while increasing the amount of cross-border mergers and acquisitions. This has led to an intensified increase of competition, both in the crisis countries and in the rest of the world. The empirical results and conclusions will be provided in the remaining two sections
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
