Thailand's banking industry is seeing the growing presence of foreign banks, particularly those from Asia-Pacific, says Fitch Rating following Bank of Tokyo-Mitsubishi UFJ's (BTMU) proposed takeover of Bank of Ayudhya (BAY).
If successful, the acquisition would increase foreign banks' share in total commercial bank assets in Thailand to 26% from 18%. BAY would become the largest foreign-owned bank in Thailand, as the fifth-largest commercial bank here.
It would also mark the first time the 49% foreign ownership limit is waived for an acquisition not related to financial rehabilitation of the acquired bank or liquidation of bank shares owned by the government.
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