BEHIND THE NUMBERS
April 1 marked the centennial of the Government Savings Bank (GSB). One hundred years ago, King Rama VI laid the foundation for an institution that would educate Thai people about banking services and promote savings habits among citizens.
Today, the GSB is among the strongest players in Thailand's deposit and borrowing market. Its market share of 14% is comparable to those of the largest commercial banks. As well, it has a few legal advantages over its private competitors.
As a specialised financial institution (SFI) supervised by the Finance Ministry, the GSB doesn't have to contribute to the Financial Institutions Development Fund (FIDF) or deposit insurance, so it has lower operating expenses, 0.47 satang for every baht of deposits to be exact. Yet it still receives the full government guarantee for all deposits. SFIs are also subject to slightly less stringent, though similar, capital adequacy requirements of the Bank of Thailand, so they have proportionately more funds to underwrite loans and put into other investments.
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.