Bank Of Thailand Research Articles

CLOUD IMPLEMENTATION IN EMERGING MARKET BANKS: THE IMPORTANCE OF SERVICE QUALITY

Cloud computing is emerging as key a technology platform for banking operations globally. In Asia, the progress of cloud application is relatively slow. This paper considers the major factors which influence a bank’s decision to contract with a technology service provider to implement a cloud based strategy. This research study identifies the trends in applying cloud computing in global banking with a focus on banks in Thailand. It will analyze the criteria IT executives in banks use to decide on the selection of technology service providers. Banks require the service provider to meet specific requirements for a cloud implementation project in a bank. A survey approach was used to identify the important criteria IT executives in banks use to select an IT technology provider for cloud applications. The sample included 367 bank IT executives and professionals in Thai and international banks based in Bangkok. SEM was used to analyze the data. Interviews were conducted with 21 IT executives for insights into their decision criteria. Service quality which is based on the conventional SERVQUAL indicators strongly influence the decision to choose a technology service provider. This selection is also influenced by the capability of service provider, their technical capability and the cloud application features. There are few studies in the literature on the decision criteria that banks use to select a provider for cloud computing application.

A Bayesian Approach for Dynamic Variation of Specific Sectors in Stock Exchange: A Case Study of Stock Exchange Thailand (SET) Indexes

This paper aims to investigate the identification of sectors of stock exchange that were positively or negatively driven by fundamental monetary tools. A Bayesian approach for dynamic model averaging (DMA) algorithm is analyzed and implemented to deliver the results for identifying what actually drives specific sector of stock exchange, where the posterior inclusion probability is crucial quantity for this investigation. Stock Exchange Thailand (SET) indexes was used as a case study for this work. The predictors used in this paper are: borrowing rate: BR, policy rate: PR, treasury bill rate: TBR, government bond yield: GBYLT, minimum overdraft rate: MOR, minimum loan rate: MLR, minimum retail rate: MRR, discount rate: DISR, savings rate: SAVER, deposit rate: DEPR and lending rate: LENDR. These factors are considered as the most important monetary policy tools from Bank of Thailand. The empirical results demonstrated that each SET index sector responses to those economic variables differently. Some of them are not actually related for specific point of time; some other times, however, they affect SET indexes. Filtered time-varying parameters allow us to indicate the relationship between stock price return and interest rates. According to statistical evidence, we found that the relationship is as of the time-varying characteristic and is unable to absolute identify whether it is positively or negatively related to stock price return for each sector. The impact of a sector on SET indexes depends on a period of time and can also be considered by using seasoning parameters.

Comment on “The Southeast Asian Economies in the Age of Discontent”

Comment on “The Southeast Asian Economies in the Age of Discontent”

Non-Parametric approach to measuring the efficiency of banking sectors crediting agribusiness in ASEAN countries

This paper explores the efficiency of banks in 9 ASEAN countries including Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam in the period of 2013 2017 by using a non-participation approach. Input-oriented DEA method, with the inputs being Equity; Deposits; Loans and Operating expenses with one output are the Total operating income. The results show that the average overall efficiency of ASEAN banks in the study period is 59.2%, with this result, if the output is constant, the banks can save up to 40.8% of the first. into the business process. Among ASEAN countries in the research period, banks in Indonesia, Cambodia and Thailand are among the most effective with the efficiency of 0.746 0.745 and 0.605. Banks in Vietnam, Malaysia and Brunei had the lowest average efficiency during the study period with average efficiency of 0.514, 0.538 and 0.544.

The Effect of Trust, Comitment, and SalesPerson Ethical Behavior on Customer Retention: The Mediating Role of Customer Satisfaction: Banking Industry of Thailand

The basic purpose to conduct the current research is to find out the impact of sales person ethical behavior, COmitment and trust on customer retention. Moreover, in present studt customer satisfaction is examines as mediator whereas word of mouth as moderatoreThe study is of the view that for the growth and sustainability of organization, satisfaction of customers is very important and a key the better performance of organizations is linked with the satisfaction of the customers. For the organizations to stay alive, it is key that they keep their customers satisfied. The sample technique was cluster sampling used in the survey research. The information is collected from people regarding a specific issue or topic in the survey research method. Questionnaires were distributed through emails among the customers of Thailand Banks. This requires less cost and time and can cover a large geographical region. For the analysis purpose, SEM-PLS is used to conduct the analysis of the variables and test the hypothesis. Whereas, the results of the study has supported the hypothesis. The findings have revealed the fact that positive word of mouth plays a critical role among customers to use the services of the service provider again. Moreover, trust is a significant factor in developing positive image and satisfaction among customers.

Thailand

There have been significant enhancements to the legal framework and the supervisory process since the last Basel Core Principles (BCP) review, resulting in high compliance. The Financial Institutions Business Act (FIBA) was adopted in 2008 and establishes the Bank of Thailand (BOT) as the sole supervisor of commercial banks with powers of enforcement and narrowing the role of the Ministry of Finance (MOF) in supervision. The MOF grants and revokes licenses based on BOT recommendations; when BOT implements prompt preventive actions (PPA), the MOF must be notified ex-post.

The Effect of Expected Income on Wealth Accumulation and Retirement Contribution of Thai Wageworkers

Thailand has now become the aging society. However, the fact that the majority of Thai wageworkers do not effectively save for their retirement may result in several elderly living below the poverty threshold during retirement. The objectives of this research article were to find the factors determining Thai wageworkers’ retirement contribution. Founded on the theory of life-cycle hypothesis, this article employed a sample of 300 wageworkers in the Northeast of Thailand and performed a statistical analysis using the structural equation modeling (SEM) approach using age as a moderator. The empirical results revealed that expected income, wealth accumulation, career status, and health status were the main constructs influencing an individual’s ability to contribute to his or her retirement. This article suggested that a wageworker should first contribute his or her income through wealth accumulation schemes such as investment in financial assets, for example, stocks, bonds, mutual funds, and properties, investment in other business as a second job, and simply cash deposit. The results suggested that wealth accumulation was the most important mediator allowing a wageworker to contribute to retirement effectively in the long term. This article also proposed thoughtful research implications for wageworkers, employers, and the Thai government. This article recommended that the government and authorized bodies (e.g., the Bank of Thailand and the Stock Exchange of Thailand) should provide more investment alternatives and improve investment knowledge of the citizens. This would allow the citizens to have sufficient financial knowledge to invest in riskier financial instruments that potentially give better returns such as stocks.

Labor Market and Economic Wage in Thailand

The objective of this study were 1) to study the structure of the labor market and wage determination in economics, 2) To calculate the conversion price of shadow wages in order to analyze the economic value of labor. This is how the mix. Using data from every critical landscape and interviewed scholars. Officer and Office of the National Economic and Social Development Board Bank of Thailand The concept of economics at the World Bank. By creating the equation Multiple regression 9 wages overall economics. Wage Group, the eight groups from the calculation of the flexibility of the labor market The value of the increased productivity of labor or the value of marginal product of labor : VMPL and Production Function of labor and capital that market. workers in non-competitive. Labor demand (employers) have the authority to set wages higher than the supply (employees) pay lower than market economics, wages or wage should be in a competitive economy. Therefore, the Government will intervene regularly.Which affects the movement of workers from neighboring countries to work in the labor market in the country even more.The calculation of wages and market wages should be.(Wages Economist) Wages should be 403.75 and Market wage (baht / day) 266.15 for The Country, Wages should be 84.82 and Market wage (baht / day) 114.73 for Agriculture, Wages should be 803.43 and Market wage (baht / day) 304.87 for Minerals and Coal, Wages should be 553.13 and Market wage (baht / day) 229.48 for Industry, Wages should be 144.99 and Market wage (baht / day) 176.71 for Construction,Wages should be 520.27 and Market wage Market wage (baht / day) 613.28 for Transportation, Wages should be 267.844 and Market wage (baht / day) 418.30 for Electricity and water Supply, Wages should be 182.601 and Market wage (baht / day) for Transportation Commercial,Wages should be 85.032 and Market wage (baht / day) 248.55 for service group.

ANALISIS PERBANDINGAN KINERJA KEUANGAN BANK SYARIAH DI INDONESIA, MALAYSIA, BRUNEI DAN THAILAND PERIODE 2011-2016

Comparing the financial performance of banks with other countries would show if the different standards and regulations affect their performance. This research aims to know if there is a significant difference in financial performance of sharia banks between Indonesia, Malaysia, Brunei and Thailand during 2011-2016. The samples used in this research consist of one sharia bank from each country: Bank Syariah Mandiri, Maybank Islamic Berhad, Bank Islam Brunei Darussalam and Islamic Bank of Thailand. This research uses a comparative quantitativeapproach using Non Performing Financing (NPF), Financing to Deposit Ratio (FDR), Return on Asset (ROA), and Capital Adequacy Ratio (CAR) as variables to indicate financial performance. One-Way ANOVA is used as the analysis technique. Results of the ANOVA test show there is a significant difference in NPF, FDR, ROA and CAR between sharia banks in Indonesia, Malaysia, Brunei and Thaiand as indicated by a significance value of 0,000 and 0,002.

Asian Miracle, Asian Tiger, or Asian Myth? Financial Sector and Risk Assessment through FSAP Experience: Enhancing Bank Supervision in Thailand

From free people to a unified Thai kingdom in the mid-14th century (Siam until 1939), and from that to Asian Tiger (or Dragon). Although Thailand saw Japanese’s brief invasion in 1941, it has never been colonized by a European power. Nevertheless, Thailand has witnessed repeated political turmoil and two military coups in this millennium alone; in 2006, Prime Minister THAKSIN Chinnawat was ousted, and in May 2014, YINGLAK was removed from office. When taking these disruptions into account, one can be easily convinced that Thailand’s economic performance amid unimaginable challenges is a remarkable story to tell. The Bank of Thailand as well as regulatory and supervisory authorities have played a pivotal role in achieving financial stability. In May/June, Thailand underwent the Financial System Stability Assessment (FSSA) as part of the Financial Sector Assessment Program (FSAP), the experience has been very positive. The results of stress tests indicate that the BOT’s fiscal, structural, and monetary reforms have strengthened the financial system significantly since the Asian crisis of the late 1990s. In spite of numerous signs of inflationary pressure worldwide, inflation in Thailand is still persistently subdued; however, as an exported dependent nation, Thailand’s economy is always susceptible to imported inflation. To insulate its economy from exogenous as well as cross-border shocks, the BOT along with national regulatory and supervisory agencies must focus on reforms and policies to reduce potential detriments of the boom-and-bust cycles. We caution the Thai government authorities to stand ready to respond because the factors that are supportive of the present low inflation could reverse any time without a warning in the near future.

Competition and Bank Integration in ASEAN

This paper is aimed at investigating how bank integration is in response to the impact of financial liberalization on bank competition. In this paper we develop tools to assess whether bank integration occurs in several economies in ASEAN. This study uses financial data from 2006 - 2017 published by 72 banks in ASEAN member countries, including Indonesia, Malaysia, Singapore, Philippines, Thailand and Vietnam. We use the 3-step method to estimate our competition model. The approach includes production function model, static discrete choice games procedure, and Impulse Response Function. We find that development and openness in the financial sector are conducive to the economic performance of the observed ASEAN countries. We also conclude that financial liberalization along with financial development will stimulate banking productivity in the economies.

Service quality, satisfaction, trust, and loyalty: the moderating role of main-bank and wealth status

PurposeThe purpose of this paper is to develop a comprehensive model representing the relationships among service quality, customer satisfaction, trust and loyalty in a retail banking service. Because many banks now emphasize acquiring more high-wealth and main-bank customers, this study also focuses on investigating the moderating roles of main-bank and wealth status on such relationships.Design/methodology/approachThis study applies a hierarchical model to measure service quality in line with recent advances in the general-marketing and consumer-behavior literature. A total of 400 valid samples were obtained from customers of a large commercial bank in Thailand. Data were analyzed using partial least squares structural equation modeling and multigroup analysis.FindingsCustomer-perceived service quality directly and indirectly affects, via satisfaction and trust, attitudinal and behavioral loyalty. Service quality affects customer loyalty less if the customer holds main-bank status. It affects behavioral loyalty less for high-wealth customers than regular customers; however, its impacts on attitudinal loyalty are identical. Main-bank and wealth status have a co-moderating impact on the relationship between service quality and customer loyalty.Research limitations/implicationsThis study was conducted on a cross-sectional basis; further, longitudinal analysis could help to assess causality and time-dependent effects among variables.Practical implicationsThe present study reconceptualizes the loyalty model, forging a deeper understanding of the moderating effects of main-bank and wealth status and thus helping banks to formulate better strategies to win customer loyalty.Originality/valueThis study aims to contribute to further discussions regarding the direct and indirect effects of service quality on loyalty to help banks formulate effective strategies for acquiring main-bank and high-wealth customers.

Customer-Centricity of Government Savings Bank in Bangkok

The study determined the customer-centricity of government saving banks in Bangkok, Thailand. Specifically, it also looked into the customer-centricity on customer-focused leadership, understanding the customers, empowering the front line, metrics that matter, feedback that drives continuous improvement, and designing the experience. Further, it also looked into the level of impact of banks: more business opportunities, increased revenue, a better image of customer satisfaction and better business sustainability; and the relationship between impact and level of customer-centricity of officers/managers and the clients. The research used the descriptive correlation research design. There were 562 respondents. Questionnaires were used to gather the data needed in the study. The statistical treatment of data consisted of mean score to determine the level of customer-centricity, the banks' impact, and the correlation analysis to discover the relationship of the customer-centricity and impact of the banks. On the findings of the research, the customer-centricity of the government savings bank in Thailand has excellent management of the following: (a) Customer-focused leadership, (b) Understanding your customer, and (c) Empower front line. While the customer-centricity of officers or managers and clients of the government savings bank in Bangkok has good management in terms of the following:(a) Metrics that matter, (b) Feedback that drives continuous improvement, and (c) Design the experience.

Does the Bank of Thailand Have the Control Over the Money Supply?

This paper estimates the broad money multiplier for Thailand using monthly data from 1997M1 to 2017M12. It is found that there is a nonlinear relationship between money supply and the monetary base. An increase in monetary base causes the broad money supply to increase proportionally, and vice versa. This implies that the estimated money multiplier is stable during the period of investigation. This finding suggests that the Bank of Thailand has the ability to control the broad money supply. The finding also points to the soundness of the current monetary policy regime.

Protection for Financial Services Clients of Thai Financial Institutions

Provision with financial consumer protection is an issue, to which precedence is given by the regulatory agencies and financial business operators, especially in the business sector of financial institutions where protection for financial services clients is provided by several laws, for example: law on financial institutions; law on credit information business; law on payment system; and law on consumer protection, etc., empowering the Bank of Thailand to stipulate regulations for the financial institutions to comply with, but from rapid development of technologies nowadays, emerge many new forms of products and services, probably complicating and resulting in unfairness to the consumers, who lack proper knowledge of the products and services. Therefore, the business operators are required to strictly comply with rules of fair administration of services to the clients (Market Conduct), stipulated by the Bank of Thailand, and build systematic cooperation with the regulatory agencies, in order to provide with protection for financial services clients and bring about confidence in the sector of financial institutions.

Corporate social responsibility (CSR) disclosure and banks’ fi-nancial performance in Five ASEAN countries

The financial industry in particular the banking sector plays an important role in the economy. The Bank acts as a financial intermediary in the society. Thus, it is important that banks are well-managed and act responsibly. The concept of corporate social responsibility (CSR) is an integral concept for realizing a responsible banking practice. A responsible bank is believed that it will be more sustainable in carrying out its role as an intermediary of funds in the society. This study is preliminary work that attempts to examine the social responsibility of banks in ASEAN-5. The objective of this research is to analyze the level of CSR in commercial banks in ASEAN-5, namely Indonesia, Philippines, Malaysia, Singapore, and Thailand in 2014. This study describes the level of CSR based on the analysis of disclosure in company's report using indicators from GRI G4 Sustainability Reporting Guidelines and GRI G4 Sector Disclosures: Financial Services. This study finds that the overall score of CSR disclosure of all listed banks is low. The CSR of commercial banks in Thailand is the highest. Banks, which published separate CSR or Sustainability Report, show a higher level of CSR compared to banks which include CSR section in their Annual Report. In addition, this study finds that CSR is positively correlated with financial performance.

Comment on “Indian Monetary Policy in the Time of Inflation Targeting and Demonetization”

Comment on “Indian Monetary Policy in the Time of Inflation Targeting and Demonetization”

Aggregate remittance cost and diaspora financing of overseas Filipino teachers in the kingdom of Thailand

The fundamental of this research is centered on determining the aggregate remittance cost and diaspora financing of Overseas Filipino Teachers (OFTs) in the Kingdom of Thailand. The Philippines is second to India with the highest total remittances from 1995-1999 (Gammeltoft, 2002). Given the fact that the Philippines ranks second in terms of remittances, the researcher is interested in determining the aggregate cost of sending remittances to the Philippines and propose the most cost-efficient and cost-effective remittance service provider. This is a related study to the previous research on Working Capital Management Practices of OFTs which was presented in Johor Bahru, Malaysia in 2017. The researcher employed and comparative research using a mixed method–partly quantitative and qualitative in order to address the statement of the problem. In descriptive research, it involves collecting information through data review, surveys, interviews, and observation subjected for a data analysis (Kefela, 2011). The researcher used a survey questionnaire and interview schedule in obtaining information relevant to this study. Primary data were provided by the OFTs who are legally teaching in Thailand for at least one year. There were 120 plus OFTs who were suryveyed and interviewed but only 53 were qualified respondents because they were out of scope and delimited from this study. Secondary financial data were also utilized. One of the momentous findings in this study is the significant switch of OFTs just recently in terms of their preferred remittance service provider. Ria remittance becomes the most preferred remittance agent of OFTs. Ria, a money transfer company has recently partnered with the Government Savings Bank (GSB) in Thailand. Ria offers a cost savings of more than 50% compared to prominent remittance agents such as the Western Union (WU). Ria and Money Gram both charge a¸?150.00 per transaction. However, Ria offers higher exchange rate. The study also revealed that 69.82% of the OFTs have a salary range of a¸?20,000 to a¸?30,000 and cash remittance ranges from a¸?5,000 to a¸?1,000 which is 25% of their salary. Policy makers of the Philippine government are encouraged to revisit the current financial literacy programs concerning OFWs in general. Further study may deal on the threats faced by WU and other remittance agents resulting to the partnership of Ria Remittance with GSB.

Corruption and Government Intervention on Bank Risk-Taking: Cases of Asian Countries

This paper aims to addresses the impact of corruption, anti-corruption commission, and government intervention on bank’s risk-taking using banks in Asian Countries such as Indonesia, Malaysia, Thailand, and South of Korea during the period 1995-2016. This paper uses corruption variable, bank-specific variables, macroeconomic variables, dummy variables and interaction variable to estimate bank’s risk-taking variable. Using data from 76 banks in Indonesia, Malaysia, Thailand and South Korea over 21 years, this research finds consistent evidence that higher level of corruption and government intervention in crisis-situation will increase the risk-taking behaviour of banks. In the other hand, bank risk-taking behaviour minimized by the existence of anti-corruption commission. In addition, this paper also finds that government intervention amplifies corruption’s effect on bank’s risk-taking behaviour because of strong signs of moral hazard and weaknesses in the governance and supervision.

Volatility of holiday effects in Thai stock market

This paper aims to examine the volatility of holiday effects on Thai stock market. The holiday effect is phenomenon in which high returns could be found around the holiday. The event provided new insight about the weak-form efficiency in the market. The SET index were collected five day daily data from the 1st January 1992 until 31st December 2016. The size of the data was 6,523 days. The holiday data were collected from 1992 to 2016. The holidays, announced by the Bank of Thailand, were 317 days along 25 years. This paper tested the holiday effect by using GARCH(1,1) model and EGARCH(1,1) model both of which are considered as appropriate for time series data. The result showed that there are statistically significant positive higher returns rate than normal days in both pre-holiday and post–holiday. Indeed, we found the abnormal positive returns in pre-holiday is higher than post–holiday at the significant level of 1%. Finally, we tested the model fit to data of two methods by using AIC and SIC. From the result it appeared that EGARCH(1,1) is more appropriate than GARCH(1,1).