Publication Code: RM11
by Pakorn Vichyanond
The early 1990s saw fundamental changes in Thailand's conventional financial system, the most important of which was a broad liberalization in nearly every component of the system. This study investigates Thailand's major financial institutions, describing their roles, sizes, and evolution. Macroeconomic issues are also examined, as are the development of various aspects of the financial markets, including money markets, the foreign exchange market, government securities and commercial paper markets, and the stock market.
The prime focus is on recent reforms,
principally the dilution of exchange controls, more freedom in interest rate
specifications, growing flexibility in portfolio management, a globalized standard of
capital adequacy, a broader scope of operations, and the establishment of Bangkok
International Banking Facilities (BIBF). In each facet of liberalization, the underlying
motives, sequencing of measures, and responses from private enterprises are analyzed. The
study concludes by presenting an overview of the financial system's achievements and its
likely future trends.
Printed in September 1994
Copyright © 1994