Abstract:
A bank is a financial institution which deals in debts and credits. It accepts
deposits, lends money and creates money. The global financial system is the
worldwide framework of legal agreements, institutions and formal and informal
economic actors that together facilitate international flows of financial capital
for purposes of investment and trade financing. Effects of globalization make
the movement of funds a requirement for many businesses, which includes Thai
commercial banks’ foreign investors.
Foreign influence on Thai commercial banking has affected the management, style
and size of the locations and branches. Additionally, scheduled branches openings
are not happening due to various factors including external economic factors
affecting the organization's performance, Return On Investment (ROI), amount
of loan losses and the ratio of capital to risk-weighted assets of the bank.
External factors included GNP (Gross National Production), export value and
the savings/spending levels of local consumers. These economic factors will
affect the organization’s strategy
and the commercial banks’ strategic
planning and staffing for expansion and influence location choice, branch cost
and size. Consumer behavior, population density and demographics of the selected
community are also external factors. Other factors include implemented transaction
technologies and the potential for future expansion. Findings of this study
concluded that the location and cost did not influence the branch expansion
in Thailand, but it is a factor that is influenced by corporate leaders. Banks
need to add branches and more service points.
Sittichai Meesrichan and Wanno Fongsuwan, 2014. An Analysis of Thai Commercial Banks Branch Expansion Factors Including
Leadership, Location, Cost and Economics. Research Journal of Business Management, 8: 552-565.
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