The role of ethnic Chinese in Thailand's banking sector development: the case study of Bangkok bank's business strategy

Abstract

Ethnic Chinese people have actively participated in Thailand's economic activities throughout history. In the early 20th century, the ethnic Chinese family groups burrowed into the power-base of the economy - the banking industry in Thailand. The purpose of this study is to investigate the role of ethnic Chinese and their business strategy in Thailand’s banking sector development during the formative years of the banking industry. This study finds that ethnic Chinese attempted to establish commercial banks in Thailand before WWII but failed in competition with European capitals, while the European-owned banks could not succeed without hiring Chinese compradors to bridge the banks with local markets. During WWII, ethnic Chinese successfully built some local commercial banks such as the Bangkok Bank in Thailand, which are still the pillars of the banking industry till nowadays. It is hoped that this study will provide the basis for improved understanding of the ethnic Chinese’ contribution to Thailand’s banking sector development. Expectations are that improved understanding will be of value for future investigation of the role of ethnic Chinese in Thailand economic society.