On Saturday, Kasikornbank, a Thailand bank, revealed its plans to invest up to US$40 million in a 35% stake in Ayeyarwaddy Farmers Development Bank, a Myanmar’s institution after it got approval from the central bank of Myanmar.
Kasikornbank, which is Thailand’s number two bank by market capitalization, said that the investment would be made through a unit of the bank known as Kasikorn Vision, which has a budget of up to US$428 million (14 billion baht) for overseas businesses.
Most Thai banks have been grappling with the sluggish economic growth in Thailand’s crowded market and have been keen to expand their businesses overseas.
Siam Commercial Bank on Friday stated that it was planning to issue loans that are worth up to seven billion baht in the next five years in Myanmar after it received preliminary approval to start a subsidiary there.
Rival Bangkok Bank, on the other hand, took a controlling stake in PT Bank Permata, an Indonesian bank for US$2.7 billion in December 2019.