The financial system in Thailand is constituted of different financial institutions regulated by the Ministry of Finance (MOF). Some of them have been briefed below;
- Domestic Commercial Banks are licensed to follow the traditional business of commercial banking practice.
- Foreign Commercial Banks get similar privileges as above commercial banks with just a few additional requirements and restrictions, for example., branching.
- Representative Offices of Foreign Commercial Banks are licensed to undertake certain business on behalf of the head office overseas. It may report the movement of business in Thailand, contact and coordinate work, research and data collection, to head office or any other affiliated companies.
- Special Financial Institutions or SFIs: Refers to banks having special mandates. The banks are;
- Bank of Agriculture and Agricultural Cooperatives,
- Government Housing Bank,
- Government Savings Bank,
- Export-Import Bank of Thailand,
- Islamic Bank of Thailand, and
- Small and Medium Enterprise Development Bank of Thailand); and
- Two Quasi-Governmental Financial Institutions namely; Secondary Mortgage Corporation and Thai Credit Guarantee Corporation.
- Securities Companies are engaged in securities brokerage, dealing, or underwriting. Also, they provide investment advisory services and cater to mutual or private fund management.
- Finance Companies and Credit Foncier Companies: Their loans are at higher interest rates and come with shorter repayment periods than the bank loans.
- Hybrid Finance and Securities Companies: They are corporations having dual licenses, which are regulated by the Bank of Thailand as well as the Securities and Exchange Commission (SEC), separately.
- Insurance Companies are able to make loans in certain situations. They also guarantee bills of exchange or promissory notes that are secured by immovable property, purchase foreign securities, and operate leasing businesses.
