SET: Massive money withdrawals and account closures at GSB bear no effects on shares of commercial banks

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BANGKOK, 19 Feb 2014 Mr. Pakorn Pitathawatchai, Chief Marketing Officer of the Stock Exchange of Thailand (SET) has indicated that the recent phenomena of massive cash withdrawals and account closures at the Government Savings Bank (GSB) bear no effects on shares of commercial banks. 

Mr. Pakorn was referring to the GSB’s earlier decision to give an inter-bank loan to the Bank for Agriculture and Agricultural Cooperatives (BAAC) which sparked an unexpected backlash from both GSB employees and customers. The move caused the latter to withdraw their money or simply close their accounts, showing their discontent with the bank’s decision. The GSB customers’ strong reaction ultimately led the bank to recall the loan and forced the bank’s president, Worawit Chailimpamontree, to resign.

Mr. Pakorn said that the group of banks’ shares would not be affected by the phenomena, citing the group’s unshakable foundation and low Non-Performing Loans rate.

He also mentioned the SET’s future directions would be determined by the formation of a new government and the nation’s economic recovery rate. The Chief Marketing Officer clarifies that Thailand’s economy could expand 5-6% if the government’s budget disbursement could be undertaken efficiently while consumer confidence, private investment and the export sector recover.