Others may merge. New entrants may pick up the pieces. The government will soon grant up to 12 banking licenses, six of them to foreign groups. The global slump in electronics demand is partly to blame. But some analysts think Thailand may not benefit much from an expected rebound next year.
Banks are the first to get hit in a slowing economy.
The talk in bank boardrooms these days has turned to rubber checks, unpaid credit card bills and repossessed automobiles. But they have also lent to finance companies, some of which they own. More than a quarter of all finance-firm loans went to real estate developers. Exactly how dire things may get is hard to say because no one knows how much bad debt lenders have. The grace period for property loans has been extended to 12 months in a government bid to give hard-pressed developers room to breathe.