Thai Credit Retail Bank (TCRB), a Thai bank that offers financial services to small and medium-sized enterprises (SMEs) and retail customers, recently restructured to focus on the microfinance sector. The bank reportedly reduced its emphasis on mortgage and used car loans because of shrinking margins and increased competition from larger banks. The bank’s new target demographic is small business owners that require credit less than or equal to THB 5 million (USD 174,000). These businesses, which often only have one or two employees, account for approximately 95 percent of businesses in Thailand.
The bank aims to increase its outstanding loan portfolio from THB 20 billion (USD 697 million) to THB 60 billion (USD 2.1 billion) by 2016. Roy Agustinus Gunara, CEO of TCRB, reportedly said, “Judging people is important to improving our risk management, especially for the microfinance segment. We have to train our staff to understand customers.”
In 2012, Thai insurance company Thai Life Insurance, reportedly reduced its shareholding in the bank from approximately 28 percent to 23.6 percent. The move followed the purchase by Indonesia-based private equity firm Northstar Group of a 25-percent stake in TCRB through Polaris Capital Investment, the investment arm of Northstar. Polaris Capital is the largest stakeholder in TCRB as of 2013.
As of December 2012, TCRB reported total assets of THB 23.5 billion (USD 819 million), total deposits of THB 18.7 billion (USD 652 million) and 17 branches.
By Nicole Boyd, Research Associate
About Thai Credit Retail Bank (TCRB)
Thai Credit Retail Bank (TCRB) is a Thai bank that offers financial services to small and medium-sized enterprises (SMEs) and retail customers. It was incorporated as a limited company in 1970 and became a public limited company in 2005. The bank had 17 branches as of December 2012. Polaris Capital Investment, the investment arm of Indonesia-based private equity firm Northstar Group, is the largest stakeholder of the bank with a 25-percent share. As of December 2012, TCRB reported total assets of THB 23.5 billion (USD 819 million), a gross loan portfolio of THB 20 billion (USD 697 million) and total deposits of THB 18.7 billion (USD 652 million).
Sources and Additional Resources:
Bangkok Post “TCRB puts focus on microfinance theme,” http://www.bangkokpost.com/business/news/345660/tcrb-puts-focus-on-microfinance-theme
MicroCapital. April 16, 2013, “MICROCAPITAL BRIEF: Employers in Thailand Required to Purchase Health Insurance for Migrant Workers,” https://www.microcapital.org/microcapital-brief-employers-in-thailand-required-to-purchase-health-insurance-for-migrant-workers/
MicroCapital. January 20, 2013, “MICROCAPITAL BRIEF: Thai Government to Add $2.6b to Village and Urban Revolving Fund,” https://www.microcapital.org/microcapital-brief-thai-government-to-add-2-6b-to-village-and-urban-revolving-fund/
MicroCapital. August 20, 2012, “MICROCAPITAL BRIEF: Thailand’s Government Banks May Refinance Microloans Via Mobile Banking,” https://www.microcapital.org/microcapital-brief-thailands-government-banks-may-refinance-microloans-via-mobile-banking/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: Credit Café Africa, Sterling Bank Partner on $22m in Loans for Providers of Health, Education in Nigeria
- MICROCAPITAL BRIEF: Ualá App Offers Saving Account Paying 9% Interest in Mexico
- MICROCAPITAL BRIEF: David Grimaud Named CEO of Palladium Group’s Bamboo Capital Partners
- MICROCAPITAL BRIEF: Microfinance Institution 4 de Octubre Borrows $1.5m from Aequitas Fund for Onlending in Ecuador
- MICROCAPITAL BRIEF: Sanad Fund for MSME Raises $26m from ASN Bank, Calvert Impact to Boost Financial Inclusion, Resilience in MENA
