Kasikornbank, or KBANK, has unveiled its Team of Thailand concept, aimed at driving Thailand out of the middle-income trap in line with the World Bank's target framework by 2037. Chief Executive Officer Kattiya Indaravijaya said Thais currently earn an average of 7,690 US dollars per person per year, and this must rise by about 87% to more than 16,000 US dollars per person per year by 2037. Achieving that will require economic growth of no less than 5% per year, up from an average of just 2% over more than a decade, along with lifting productivity from 1.2% per year to 3.7% per year, a threefold increase, and raising capital market and credit growth from 3% to 4%. The Team of Thailand concept divides roles into a forward line, the business and private sector, driving through seven future industries; a midfield, the financial institutions that allocate capital; and a back line, the government, which adjusts infrastructure and regulations. It also sets national indicators to shift from K-shaped growth to inclusive growth. Kattiya added that the economic damage from the recent flooding was significantly lower than that of the 2011 great flood, so there is no need to set aside additional risk provisions in the third and fourth quarters. The main affected group is retail lending, such as home and auto loans, rather than the business sector, while non-performing loans have shown no significant upward signal, and the bank will continue with its 3+1 strategy and Customer Strategy.
Kasikornbank Public Company LimitedKBANK unveils Team of Thailand plan and says flood damage is lower than 2011, so no extra Q3/Q4 provisions are needed, though retail lending is the main affected group.
