KBANK warns high risks from foreign banks

BANGKOK, 21 January 2010 (NNT) – Even though the global economy is improving, foreign banks still carry high risks, said Songpol Chevapanyaroj, Executive Vice President of Kasikorn Bank (KBANK), adding that the risks had not showed signs of reducing.

The KBANK executive advised that trading with foreign countries was not 100% safe as the risk rate of foreign banks like Citibank or JP Morgan was expected at 2-2.4%, 0.5% higher than the normal rate. Even though letters of credit (L/C) have been issued by foreign banks for Thai exporters, he advised them to consult local banks or seek confirmation to their L/C.

Mr Songpol also expressed his belief that international trading and exports would improve this year in terms of value and volume from last year.