Bangkok--Dec 17--Weber Shandwick (Thailand)
Kiatnakin, (KK) has passed the MoF's criteria to be approved to become a commercial bank. The new bank will open in mid-2005, by upgrading its 15 finance offices as bank branches. KK assets and capital, give it a BIS capital ratio of nearly 25%, are more than sufficient for it to expand its loan portfolios. KK's lending business has grown by approximately 50% this year, and is confident its efficiencies and market position will enable it to continue expanding its lending services.
The Finance Minister approved Kiatnakin Finance Public Company Limited (KK) plan to operate as a commercial bank on December 15. KK is in the process of developing its working plan for the introduction of commercial banking services. KK will report its progress to the Bank of Thailand each month until the new bank is successfully established. The bank must be operational with one year of receiving official approval. Once the bank is established KK will return the licenses for KK Finance Plc., and Radanatun Finance Plc., to the Finance Ministry.
"KK will be a commercial bank that focuses on the business areas that it already knows, which are consumer lending, real estate development lending, and commercial and industrial lending in specific sectors, such as transportation, packaging, and printing etc." Said Mr. Supol Wattanavekin, Chairman of Kiatnakin Finance Plc."Our financial position is strong and we have sufficient assets and capital available to continue to expand our loan portfolios. Presently, KK has 60-billion-baht worth of assets, and we anticipate having assets of 100 billion baht within next three years." He added.
"KK will provide a full range of commercial banking services, including ordinary deposits, fixed accounts, saving accounts, among many others. KK's existing finance offices will be upgraded to become KK Bank branches. The branch network will be expanded over time to cover all main provinces in Thailand. The bank will monitor client demands and as required it will offer foreign monetary, international trading and other services," said Mr. Supol.
Kiatnakin has an "A-"from TRIS Rating Co., Ltd. as of last month.
Mr.Thawatchai Suttikitpisarn , Director, Head of Residential Project Lending, added, "Kiatnakin's internal readiness to become Kiatnakin Bank is already well developed. We have been preparing to become a bank since we submitted our plan to The Bank of Thailand. Human Resources are the most important thing in this change, and we have hired leading consultants to assist us in moving through the various stages of development and HR Change Management. With their help and the participation of all our management, our customer service staff and work procedures will be modified to suit our new operation. Our IT system will not need to be demolished. Our existing systems were designed to handle rapid growth and expansion of the system is fairly simple. Our core banking systems will certainly be ready for 2005 opening"
For more information, please contact:
Tachakorn Limpasurat/ Dr. Pensri Tasnavites
Public Relations Consultant, Weber Shandwick (Thailand) Limited
Tel: 02.257.0300 ext. 314, 330 End.