Ownership and Business Practice of the Thai Banking Sector After the Asian Financial Crisis: A Case Study of a Family Business

Wanxue Lu ()
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Wanxue Lu: Kyoto University

Chapter Chapter 6 in Post-Asian Financial Crisis Reforms in Thailand, 2024, pp 117-145 from Springer

Abstract: Abstract In the two decades following the Asian Financial Crisis, Thailand’s financial landscape has seen profound changes. This chapter delves into the effects of these extensive regulatory and financial environmental shifts on the Thai commercial banking sector after the crisis, from an organizational perspective. Through an analysis of Kasikornbank, a leading bank initiated by families with Chinese heritage, the study specifically examines the key elements of family business progression, ownership changes, management control, and business practices. Concerning ownership, the founding family became minor shareholder post-crisis, while foreign ownership saw a considerable increase. Predominantly financial sector-based major foreign investors emerged as significant shareholders, maintaining a stable shareholding ratio since their initial investment. In terms of management control, the founding family holds a consistent, senior board position, along with executive roles, underscoring their ongoing influence in management. The study’s analysis of post-crisis management reforms reveals that the increased proportion of foreign investors has not markedly affected the bank’s top management. Additionally, the continuous control exerted by the founding family ensures internal stability in decision-making, especially in long-term strategic corporate projects. This stability ultimately grants the bank a significant competitive advantage.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spbchp:978-981-97-3771-0_6

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DOI: 10.1007/978-981-97-3771-0_6

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