Comparative analysis of determinants of bank performance : foreign and domestic banks in Thailand

Name: Sasin Kirakul

keyword: Determinants

; Bank performance

; Banks and banking

Abstract: The increasing role of foreign banks and their growing significance in Thailand’s financial system is a trend that will likely continue going forward. The purpose of this empirical study is to identify the determinants of performance of foreign banks in Thailand as compared to those of domestic banks. This study explores the extent to which bank-specific factors, macroeconomic factors and multinational factors, affect the profitability of domestic and foreign banks in Thailand, using panel data on banks operating in Thailand during 2006 - 2014. The findings indicate statistically significant and negative impact of asset size and GDP growth, a positive effect of capital adequacy, and a mixed influence of liquidity risk on performance of domestic banks. For foreign banks, significant and positive determinants of bank performance are liquidity risk, cost-to-income ratio and capital adequacy ratio, whereas trade relationship between home country and Thailand is identified as a significant and negative determinant of foreign banks’ profitability

Thammasat University. Thammasat University Library

Address: BANGKOK

Email: preserv@tu.ac.th

Name: Pornchai Chunhachinda

Role: advisor

Created: 2015

Modified: 2021-08-31

Issued: 2021-08-31

DOI: 10.14457/TU.the.2015.91

eng

DegreeName: Master of Business Administration

Level: Master's Degree

Descipline: Business Administration

Grantor: Thammasat University

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