The Economic Cabinet approved the Financial Sector Master Plan Phase II (FSMP Phase II), jointly proposed by the Ministry of Finance (MOF) and the Bank of Thailand (BOT), reflecting the importance placed on the setting of goals and strategic direction for continuous development of financial institutions system. The FSMP Phase II is to be implemented during 2010 – 2014, following the implementation of the FSMP Phase I during 2004 – 2008.
The FSMP Phase II aims to enhance the efficiency of the financial institutions system, thereby enabling financial institutions to perform their financial intermediation role more efficiently, become more competitive, be able to serve a broader group of households and businesses, and maintain resiliency in face of the fast-changing environment. With greater efficiency, the financing cost of individuals and businesses would decline while the economy would be more competitive. Key measures of the FSMP Phase II can be summarized under 3 pillars: 1) reduce system-wide operating cost; 2) promote competition and financial access; and 3) strengthen financial infrastructure, with details as follows:
1. Reduce system-wide operating cost to enhance management efficiency of financial institutions, which would translate to lower costs of providing services to consumers and improved ability to compete with foreign competitors. Important measures include the followings:
1.1 Reduce regulatory costs that affect operating costs and opportunity costs for financial institutions. Improvement in financial institutions regulations is still based on the key principle that such rationalisation of regulation would promote efficiency and lower costs, without compromising stability and soundness of financial institutions and the economy as well as consumer rights.
1.2 Reduce costs from remaining NPL and NPA. Important measures include tax measures and enhancement in demand for NPA by allowing banks to partner with private firms to work on increasing the attractiveness of foreclosed immovable properties. The efficiency in trading of NPA would also be promoted by establishing an NPA information centre, and fostering an effective mechanism for foreclosure and subrogation by buyers.
2. Promote competition and financial access through various measures such as introducing new service providers into the system, expanding the scope of business of existing service providers to induce greater competition in price and service quality, and fostering greater opportunity for all sectors of the economy to access financial services from the financial institutions system. Such measures would enhance the efficiency of the overall economy. Salient features include the followings:
2.1 Promote competition within the financial institutions system by setting policies based on the following 5 principles:
1) Build a financial institutions system that provides strong and resilient support for the economy under all scenarios.
2) Encourage financial institutions to become larger through voluntary mergers while having in place measures to prevent anti-competitive behaviour to safeguard fair consumer treatment. As a result, there would be gain from economy of scale and scope, thereby lifting competitiveness of the Thai financial institutions system.
3) Promote competition by enabling financial institutions to be more flexible in managing their branch network and business scope, thus enhancing the role of existing service providers. Moreover, new service providers would be introduced in order to further increase competition, thereby raising the efficiency of the financial institutions system.
4) Allow new service providers into the financial institutions system regardless of nationality while still preserving the One Presence rule. Emphasis would be placed on new service providers with the ability to fill gaps within the system in order to enhance the efficiency and stability of the financial institutions system, in line with the trend of Thailand’s international trade and investment. Approval would be on a case-by-case basis and consideration by the MOF and the BOT would be based on appropriateness for the Thai financial institutions system.
5) Support the role of Specialized Financial Institutions (SFIs) in focusing on providing financial services to low-income population and micro businesses that do not have access to services provided by commercial banks. Government ownership in the commercial banking system after the crisis in 1997 would also be reduced.
2.2 Promote financial access to various groups of the population so as to better suit their needs at a more reasonable price, especially for micro businesses and low-income individuals. There would be measures to encourage private financial institutions to adopt business models suitable to serve the population groups that currently lack the opportunity to access financial services. For example, new entry would be permitted for service providers with expertise and proven success in microfinance. In this connection, the MOF and the BOT would consider new licenses on a case-by-case basis, subjected to rules and conditions stipulated. Meanwhile, there would be measures to support the role of the government and SFIs in filling the gaps left open by commercial service providers.
3. Strengthen financial infrastructure. Efficient and more complete financial infrastructure is an important prerequisite for enhancing efficiency of the financial institutions system. Among the key infrastructures for financial institutions are those relating to the lending mechanism, which is the main business of financial institutions. Under the FSMP Phase II, there are 5 areas of financial infrastructure improvement.
3.1 Enhance the capability and tools for risk management of financial institutions, including for credit, market, liquidity, and settlement risks, in response to financial system and economic development.
3.2 Improve the information system to support risk management of financial institutions, as well as facilitate their strategic planning and service expansion. Such improvements would include capacity enhancement of the National Credit Bureau and exploring development of a data pooling system, with due consideration for appropriate protection of client confidentiality.
3.3 Review financial laws that support risk management of financial institutions with regard to lending and managing NPA, including: 1) the secured transaction law; 2) the foreclosure law; and 3) the bankruptcy law. The review aims to establish the necessary legal infrastructure that is conducive to risk management of financial institutions while providing individuals and small businesses with potential better opportunities for improved access to the business restructuring process.
3.4 Promote greater efficiency in the use of information technology (IT) and reduce cost of providing financial services. This measure aims to support more efficient use of IT and review of related supervisory standards to ensure security of such services to enhance confidence of users.
3.5 Enhance the capacity of human resource in the financial institutions system by improving the skills and expertise of staff, enhancing the role of the Thai Institute of Banking and Finance Association and encouraging financial institutions to set clear policies on staff training and development.
The MOF and the BOT anticipate that implementation of the FSMP II would benefit individuals, businesses, the financial institutions system and the country as a whole, in the following ways.
1) An efficient financial institutions system, with good risk management and corporate governance, that is strong, not burdensome for the country, and supportive of economic development in both normal and crisis scenarios.
2) Reduction in costs of services provided by financial institutions, that would help raise income of Thai people and lower operating costs of the private sector, thus increasing the country’s competitiveness.
3) Improving access for users to a broad range of financial services that is appropriate for their needs, especially through the promotion of microfinance to help reduce burden from resorting to informal market.
4) Strengthening of grass-root communities through knowledge sharing between successful microfinance experts and local grass-root micro institutions, which would lead to greater financial strength and financial immunity for all groups of the Thai society.
5) Creation of opportunities for improved access to the business restructuring process for individual debtors and small business debtors with potential, thereby enabling the continuation of their businesses and safeguarding value-added for the overall economy.
6) Infrastructure for the financial system that is conducive to risk management of financial institutions, enabling them to deal with remaining non-performing loans and assets more effectively, and thus leading to lower operating costs and greater readiness to serve customers.
After the principles stipulated in the FSMP Phase II have been approved, the FSMP Phase II Implementation Committee, chaired by the Minister of Finance, would be formed to oversee the implementation of the Plan.
In this regard, the BOT would arrange for a hearing with all financial institutions in November, this year.
Saturday, November 21, 2009
Friday, November 13, 2009
POPULAR LONG-TERM CORPORATE BONDS ARE LICENSED TO SELL
One result of the past year's financial turmoil has been much greater corporate bond issuance in Thailand.
Circumstances have been favourable. Banks are more risk averse due to the economic slowdown and have not been actively extending loans. Meanwhile, lower yields and reasonable credit spreads mean that rates are appealing for borrowers. At the same time, very low bank interest rates make bond yields attractive to savers.
Already this year, corporations have sold more than Bt250 billion in longer-term bonds, not including short-term commercial paper, for an increase of 120 per cent from the same period last year.
The two main distribution methods for bonds are selling directly to retail investors, or selling to institutional investors such as mutual funds or insurance companies, which in turn distribute them to the general public.
The current craze for corporate bonds is to sell directly to retail investors.
On the surface, this appears to be more efficient. However, direct retail sales have major limitations with two key concerns - credit risk and liquidity risk.
Years ago, retail sales of bonds started out with issuance by the government, or by the very best corporate names. However, it has since evolved into virtually any company selling bonds to the general public, significantly raising the potential credit risk.
This has several implications:
Retail bond investors usually have exposure to only a few names and underestimate downside risks, while lack of diversification raises the possible loss should any transaction go bad.
Retail investors often do not have the resources to monitor and analyse changes in corporate credit risk on an ongoing basis.
Retail investors may not be knowledgeable enough to demand appropriate pricing to match the risk involved.
The other key concern is that retail-oriented bond issues usually lack liquidity in the secondary market. Even if savers plan to buy and hold bonds until maturity, unforeseen circumstances could make them change their minds.
If sales are possible at all, bid-offer spreads are likely to be very large to the small investor. In case of a forced sale, there could also be mark-to-market losses that are difficult for retail investors to hedge, unlike institutional investors that may be implementing yield curve strategies.
For all these reasons, institutional investors theoretically have many advantages over individuals in buying and managing bonds.
At the moment, local financial institutions still have room for development. Bond mutual funds tend to be focused on short-term money market debt, rather than on longer-term corporate bonds. There is a lack of activity in the secondary market, while hedging is still not widely used.
Over time, however, the market should continue to develop. Greater issuance will lend depth to the market. Institutional investors will gain in scale and sophistication. And hedging tools such as interest rate futures and repurchase agreements will become available, or more widely used.
In the medium term, this would be healthy for the local financial system, and would be better for consumers as well.
Circumstances have been favourable. Banks are more risk averse due to the economic slowdown and have not been actively extending loans. Meanwhile, lower yields and reasonable credit spreads mean that rates are appealing for borrowers. At the same time, very low bank interest rates make bond yields attractive to savers.
Already this year, corporations have sold more than Bt250 billion in longer-term bonds, not including short-term commercial paper, for an increase of 120 per cent from the same period last year.
The two main distribution methods for bonds are selling directly to retail investors, or selling to institutional investors such as mutual funds or insurance companies, which in turn distribute them to the general public.
The current craze for corporate bonds is to sell directly to retail investors.
On the surface, this appears to be more efficient. However, direct retail sales have major limitations with two key concerns - credit risk and liquidity risk.
Years ago, retail sales of bonds started out with issuance by the government, or by the very best corporate names. However, it has since evolved into virtually any company selling bonds to the general public, significantly raising the potential credit risk.
This has several implications:
Retail bond investors usually have exposure to only a few names and underestimate downside risks, while lack of diversification raises the possible loss should any transaction go bad.
Retail investors often do not have the resources to monitor and analyse changes in corporate credit risk on an ongoing basis.
Retail investors may not be knowledgeable enough to demand appropriate pricing to match the risk involved.
The other key concern is that retail-oriented bond issues usually lack liquidity in the secondary market. Even if savers plan to buy and hold bonds until maturity, unforeseen circumstances could make them change their minds.
If sales are possible at all, bid-offer spreads are likely to be very large to the small investor. In case of a forced sale, there could also be mark-to-market losses that are difficult for retail investors to hedge, unlike institutional investors that may be implementing yield curve strategies.
For all these reasons, institutional investors theoretically have many advantages over individuals in buying and managing bonds.
At the moment, local financial institutions still have room for development. Bond mutual funds tend to be focused on short-term money market debt, rather than on longer-term corporate bonds. There is a lack of activity in the secondary market, while hedging is still not widely used.
Over time, however, the market should continue to develop. Greater issuance will lend depth to the market. Institutional investors will gain in scale and sophistication. And hedging tools such as interest rate futures and repurchase agreements will become available, or more widely used.
In the medium term, this would be healthy for the local financial system, and would be better for consumers as well.
Kbank refocuses on corporate lending
Kasikornbank is refocusing on coporate lending to boost fee-based income, with a plan to increase corporate loans by 3-4 per cent next year.
Vasin Vanichvoranun, first senior vice president, Corporate Busniess Division, said that this year the bank expected to expand corporate lending to Bt290 billion from Bt280 billion at present, and that next year's level would be in line with the country's economic-growth forecast of 2.5-3.5 per cent.
With growth of 3-4 per cent, the porfolio will rise to Bt301.6 billion.
"Income from corporate-banking business this year will be Bt11 billion, and this will rise 12 per cent next year. While the fee and interest income ratio is 45:55 this year, it will be balanced next year," he said.
A bank survey of 10,000 corporations found that 20 per cent were Kasikornbank clients. The companies' annual sales range from Bt400 million to more than Bt5 billion.
Vasin said the percentage was more satisfactory than the bank's market share in the corporate-loan market, as it reflects corporate customers' satisfaction with its services. In the previous survey, the Kasikornbank percentage was 16-17 per cent.
He added that the bank's strategy next year was to continue being in partnership with customers, but it would try to be an adviser rather than simply a lender in order to develop long-term relationships that could establish the bank's position in their minds.
Corporate clients are now offered a veriety of services, including transaction financing such as cash management, trade solutions and supply-chain assistance.
Meanwhile, as interest rates may start to rise next year, along with inflation and oil prices, some customers may take the opportunity to adjust their financial structure. The bank is ready to serve this development through syndicated loans and advice on bond issuance, said Vasin.
Besides, it will provide a merger-and-acquisition service in order to satisfy customers who would like to expand their business in line with economic expansion.
Among the major constituents in Kasikornbank's corporate business are companies in the electrical, construction, construction materials and export-oriented industries, including those making electrical appliances and electronics, agricultural products and machinery.
Vasin Vanichvoranun, first senior vice president, Corporate Busniess Division, said that this year the bank expected to expand corporate lending to Bt290 billion from Bt280 billion at present, and that next year's level would be in line with the country's economic-growth forecast of 2.5-3.5 per cent.
With growth of 3-4 per cent, the porfolio will rise to Bt301.6 billion.
"Income from corporate-banking business this year will be Bt11 billion, and this will rise 12 per cent next year. While the fee and interest income ratio is 45:55 this year, it will be balanced next year," he said.
A bank survey of 10,000 corporations found that 20 per cent were Kasikornbank clients. The companies' annual sales range from Bt400 million to more than Bt5 billion.
Vasin said the percentage was more satisfactory than the bank's market share in the corporate-loan market, as it reflects corporate customers' satisfaction with its services. In the previous survey, the Kasikornbank percentage was 16-17 per cent.
He added that the bank's strategy next year was to continue being in partnership with customers, but it would try to be an adviser rather than simply a lender in order to develop long-term relationships that could establish the bank's position in their minds.
Corporate clients are now offered a veriety of services, including transaction financing such as cash management, trade solutions and supply-chain assistance.
Meanwhile, as interest rates may start to rise next year, along with inflation and oil prices, some customers may take the opportunity to adjust their financial structure. The bank is ready to serve this development through syndicated loans and advice on bond issuance, said Vasin.
Besides, it will provide a merger-and-acquisition service in order to satisfy customers who would like to expand their business in line with economic expansion.
Among the major constituents in Kasikornbank's corporate business are companies in the electrical, construction, construction materials and export-oriented industries, including those making electrical appliances and electronics, agricultural products and machinery.
Sunday, November 8, 2009
NEW ZEALAND'S HOME BUILDING APPROVALS INCREASE 3.3 PER CENT
Home-building approvals in New Zealand rose for the fifth time in six months in September, signalling lower mortgage rates are helping to kick-start demand for property.
Permits increased 3.3 per cent from August, Statistics New Zealand said, citing seasonally adjusted fugures. Excluding apartments, approvals rose 2.8 per cent to a 13-month high.
Reserve Bank Governor Alan Bollard said he was unlikely to raise borrowing costs from a record low until the second half of next year, to help the economy emerge from its worst recession in three decades. There are signs the economy is growing again.
"The pace of increases is not substantial but is in line with what would be expected given the increase in house sales, low interest rates and improvement in net migration," said ANZ National Bank economist Philip Borkin.
Economists monitor approvals excluding apartments because apartment consents are volatile. There were 155 apartment approvals in September, up from 30 in August and down from 366 in September 2008.
Excluding apartments, approvals in the third quarter increased 31 per cent quarter on quarter. Economists expect building approvals to keep pacing gains in house sales, property prices and immigration.
Home sales rose 44 per cent year on year in September, the Real Estate Institute reported. House prices increased 1.9 per cent from August. The number of permanent migrant arrivals exceeded departures by 17,043 in the year ending September 30, the most since 2004, the government said last week.
"With house sales still rising, further consent increases are likely over the next six months, and this should see residential construction make some reasonable contributions to growth over 2010," Borkin said.
Property construction has slump year on year because of the recession, which began in last year's first quarter, and as a credit crisis curbed development projects. In the 12 months ending September 30, approvals fell 35 per cent.
The value of approvals for home building and renovations declined 14 per cent in September from a year earlier to 480 million New Zealand dollars (Bt11.56 billion), the agency said.
Permits increased 3.3 per cent from August, Statistics New Zealand said, citing seasonally adjusted fugures. Excluding apartments, approvals rose 2.8 per cent to a 13-month high.
Reserve Bank Governor Alan Bollard said he was unlikely to raise borrowing costs from a record low until the second half of next year, to help the economy emerge from its worst recession in three decades. There are signs the economy is growing again.
"The pace of increases is not substantial but is in line with what would be expected given the increase in house sales, low interest rates and improvement in net migration," said ANZ National Bank economist Philip Borkin.
Economists monitor approvals excluding apartments because apartment consents are volatile. There were 155 apartment approvals in September, up from 30 in August and down from 366 in September 2008.
Excluding apartments, approvals in the third quarter increased 31 per cent quarter on quarter. Economists expect building approvals to keep pacing gains in house sales, property prices and immigration.
Home sales rose 44 per cent year on year in September, the Real Estate Institute reported. House prices increased 1.9 per cent from August. The number of permanent migrant arrivals exceeded departures by 17,043 in the year ending September 30, the most since 2004, the government said last week.
"With house sales still rising, further consent increases are likely over the next six months, and this should see residential construction make some reasonable contributions to growth over 2010," Borkin said.
Property construction has slump year on year because of the recession, which began in last year's first quarter, and as a credit crisis curbed development projects. In the 12 months ending September 30, approvals fell 35 per cent.
The value of approvals for home building and renovations declined 14 per cent in September from a year earlier to 480 million New Zealand dollars (Bt11.56 billion), the agency said.
HK TIGHTENS REGULATIONS ON SALES OF DERIVATIVES
Officials in Hong Kong said yesterday regulations on the sale of complicated investment products have been tightened after thousands of local retail investors were burned by Lehman Brothers-backed derivatives last year.
But lawmakers said the new measures fall short and urged the government to prosecute banks that misled investors and to ban some risky products outright.
Under the new regulations, banks must issue risk warnings for complex products and record conversations between their sales staff and clients to prevent deception, KC Chan, Secretary for Financial Services and the Treasury, said at a legislative hearing yesterday. The government is also considering setting up an investor education body and a financial services ombudsman, he said.
The measures come after 30,000 Hong Kong small investors who bought US$1.8 billion (Bt60.2 billion) in Lehman-linked derivatives were left in limbo after the US investment bank collapsed September last year. They weren't fully aware of the risk their investments carried, many of the complex derivatives were innocuously labelled "mini-bonds", angry investors took to the streets.
Hong Kong regulators announced a settlement with 16 local banks in July that returned up to 70 per cent of principal to the buyers, or up to $6.3 billion Hong Kong dollars (B27.2 billion).
Opposition lawmaker Ronny Tong criticised the government for not focusing on legal action. "I think it's strange that there is not a single case of prosecution after investigating for more than a year," Tong said.
Another lawmaker, Albert Ho, asked Chan why the government didn't consider banning certain risky products altogether, as do a number of other developed markets when it comes to selling to retail investors.
"Your approach is still disclosure-based. As long as you disclose the risks, if the disclosure is fair and comprehensive, you can cell anything. But shouldn't the government exercise discretion and ban certain products that are very complicated, very risky or whose terms are unfair to investors?" Ho said.
Chan argued disclosure-based regulation is the international norm, adding that the new measures require bank staff to explan their products in layman's terms and assess their clients' appetite for risk.
But lawmakers said the new measures fall short and urged the government to prosecute banks that misled investors and to ban some risky products outright.
Under the new regulations, banks must issue risk warnings for complex products and record conversations between their sales staff and clients to prevent deception, KC Chan, Secretary for Financial Services and the Treasury, said at a legislative hearing yesterday. The government is also considering setting up an investor education body and a financial services ombudsman, he said.
The measures come after 30,000 Hong Kong small investors who bought US$1.8 billion (Bt60.2 billion) in Lehman-linked derivatives were left in limbo after the US investment bank collapsed September last year. They weren't fully aware of the risk their investments carried, many of the complex derivatives were innocuously labelled "mini-bonds", angry investors took to the streets.
Hong Kong regulators announced a settlement with 16 local banks in July that returned up to 70 per cent of principal to the buyers, or up to $6.3 billion Hong Kong dollars (B27.2 billion).
Opposition lawmaker Ronny Tong criticised the government for not focusing on legal action. "I think it's strange that there is not a single case of prosecution after investigating for more than a year," Tong said.
Another lawmaker, Albert Ho, asked Chan why the government didn't consider banning certain risky products altogether, as do a number of other developed markets when it comes to selling to retail investors.
"Your approach is still disclosure-based. As long as you disclose the risks, if the disclosure is fair and comprehensive, you can cell anything. But shouldn't the government exercise discretion and ban certain products that are very complicated, very risky or whose terms are unfair to investors?" Ho said.
Chan argued disclosure-based regulation is the international norm, adding that the new measures require bank staff to explan their products in layman's terms and assess their clients' appetite for risk.
DEUTSCHE BANK EXECUTIVE WANTS TO OPEN A POLITICAL ACCOUNT
As the managing director and head of the Global Markets division of Deutsche Bank in Thailand, responsible for more than 133 billion baht in assets and liabilities, and a mother of three young children, Ornkanya Pibuldham could be regarded as a "Thai Superwoman".
She is also one of the best paid and increasingly influential women in Thailand and is looking beyond business, aiming to enter politics and maybe become a senator or even a minister one day.
Ms Ornkanya, also known as Mook and who turned 40 in September, was born in Bangkok."My father used to run an engineering consulting firm and my mum was a professor of engineering at Chulalongkorn University. As both my parents were engineers,I also became one. After graduating with a bachelor's degree in engineering from Chulalongkorn University, I helped my dad, working for his company."
But engineering didn't suit her, and pursuing an early interest in golf, she opened the first golf school in Thailand while still in her early twenties. She also became the publisher of Golf Digest Magazine . However, the business wasn't successful and seeing so many of her friends doing well in banking,she went to the University of Exeter in the UK in 1995, and emerged two years later with an MA in finance and investment.
"After that I took a job at Standard Chartered Bank in London as a foreign exchange trader and management trainee. I was with them [in London] for one year and another four in Thailand.
"I was approached by Deutsche Bank in 2000, and have worked here since. We are the largest bank in Germany and one of the biggest foreign banks in Thailand. My first position was in corporate foreign exchange sales, and my career took off," Ms Ornkanya said.
"I was appointed to my current position in February 2007. I look after the bank's balance sheet, trading, sales activities, clients,markets, managing the cash-flow for the bank and so on. I have 15 people in my team, and they are all smart. I like them to be smarter than me, so that I can work less," she joked.
"Since I'm in trading and sales, the work is quite intensive. It involves a lot of stress because we are trading. I'm so lucky that I do well. The Deutsche Bank group market department is the major contributor of the bank's revenue," Ms Ornkanya said.
Commenting on the current economic situation in Thailand, she added:"Last year was a good year for us because the market was volatile - the stock market moved and the currency moved, because of all the news about the global economy. We were lucky that we could catch the trends so we could make money.
"However, if you ask me about the economy, I think that Thailand is lucky because of the Bank of Thailand (BoT). It has stringent rules and regulations, but doesn't control the banks, and it has very good, well qualified people working for it. The BoT is very strict,both for local and foreign banks. That's why most of them here weren't affected [by the crisis].
"Thai banks survived the crisis and are generally doing well in comparison to many banks abroad that collapsed because of the 'sub-prime' crisis. They [Thai banks] have plenty of cash and because of it they can lend to their clients, and for that reason the companies here have a lot of money as well.The fact that Thai companies went out buying assets in other regions is because they have access to cheap liquidity and use it as an opportunity to buy cheap assets.
"Thailand is a country with liquidity because the banks were not affected by the crisis. We are an exporting country, so when other countries are not doing well, it is difficult for us to do well, but in general, because we have liquidity, the country has the money to muddle through the crisis.
"The worst of the financial crisis in Thailand is most probably over. However, political uncertainties and rumours in the market are factors that discourage investors who can choose to invest somewhere else," she warned.
And she had some advice for foreign investors:"If you ask me for advice for corporate investors, I'd need some parameters before I could advise what company or sector they should look at.
"But for those coming here as individuals,I strongly recommend they invest in property in Bangkok, especially in the business districts.This is a very attractive investment and you can make money. To me, Bangkok is Thailand.Twenty per cent of the Thai population live here and the numbers are increasing every day. If you can't afford to invest in these areas, then buy a piece of property on the outskirts of Bangkok. As long as it's within Bangkok, you will be fine. All the infrastructure will come to you. With our current pace of development, I can't really see Chiang Mai or Khon Kaen becoming Boston or Manchester in the near future - you're not going to make money there.
"Thailand is a good place for foreigners to invest - great infrastructure, rigid laws and regulations, a strong financial system. We may have instability on our politics, but we all know by now that it is just 'our way of life'.
"We might not have been able to come this far without this instability," she stressed,adding:"I haven't found a foreigner who has a negative view of Thailand. They all love Thailand. Sometimes I ask myself whether Thai people love Thailand as much, whether we are proud to be Thai and say enough good things about our country.
"Of all the foreign banks in Thailand, I'm the only female who does this kind of work.The others are all men. This job is very demanding, especially for a woman with three children to look after, plus I do a lot of travelling abroad."
On her priorities, both personal and in business, Ms Ornkanya said:"I work for the bank, so I want the bank to be successful,because then I will be as well. As for my personal life, my priority is to make sure that my kids are doing well in a secure environment.
"As to the future, I'm at the top at Deutsche Bank, so what next? Whatever happens, I want to live and work in Thailand. When I was young, I used to think about working abroad, but not now. If you talk about job security, or your value to an international firm, it is here."
Commenting on her biggest achievements and failures, she said:"To have my three beautiful kids and to be a good mum to them. My family and my job are equally important to me, but of course, family is the most important. I can walk away from being a Deutsche Bank executive, but not from being a mother. No major failures as yet,definitely not in my business."
As for her biggest challenges, Ms Ornkanya said:"Maybe I'll sit here for another few years. I need to move on at some time so my people can grow. One day, I'd like to be in politics to be able to do something for my country. My day-to-day work gives me the opportunity to get to know people and to understand their organisations and their needs. I'm making my way up there. I was approached to join a political party, but I haven't made any decision at this time. Don't you think Thai politics has many more colours than other countries? It can get you into a big fight with your best friend, and make your parents stop talking to each other."
Ms Ornkanya attributes her success to her parents, who are also her role models:"My mum gave me self confidence and my dad gave me a great sense of humour. When people have self confidence, they tend to be surrounded by smart people.
"And a sense of humour stops you from becoming arrogant. By the way, I'm not that successful, I have another 20 years to go before retirement. Let's talk about my 'success'then."
Finally, Ms Ornkanya had some advice for young Thai women:"You should be committed and persistent in whatever you do.We have to make choices every day, so make sure that you make the right choices. Women always make decisions based on emotion.That's why we make wrong choices all the time. I have made wrong choices, and I have to live with them," she said without elaborating.
She is also one of the best paid and increasingly influential women in Thailand and is looking beyond business, aiming to enter politics and maybe become a senator or even a minister one day.
Ms Ornkanya, also known as Mook and who turned 40 in September, was born in Bangkok."My father used to run an engineering consulting firm and my mum was a professor of engineering at Chulalongkorn University. As both my parents were engineers,I also became one. After graduating with a bachelor's degree in engineering from Chulalongkorn University, I helped my dad, working for his company."
But engineering didn't suit her, and pursuing an early interest in golf, she opened the first golf school in Thailand while still in her early twenties. She also became the publisher of Golf Digest Magazine . However, the business wasn't successful and seeing so many of her friends doing well in banking,she went to the University of Exeter in the UK in 1995, and emerged two years later with an MA in finance and investment.
"After that I took a job at Standard Chartered Bank in London as a foreign exchange trader and management trainee. I was with them [in London] for one year and another four in Thailand.
"I was approached by Deutsche Bank in 2000, and have worked here since. We are the largest bank in Germany and one of the biggest foreign banks in Thailand. My first position was in corporate foreign exchange sales, and my career took off," Ms Ornkanya said.
"I was appointed to my current position in February 2007. I look after the bank's balance sheet, trading, sales activities, clients,markets, managing the cash-flow for the bank and so on. I have 15 people in my team, and they are all smart. I like them to be smarter than me, so that I can work less," she joked.
"Since I'm in trading and sales, the work is quite intensive. It involves a lot of stress because we are trading. I'm so lucky that I do well. The Deutsche Bank group market department is the major contributor of the bank's revenue," Ms Ornkanya said.
Commenting on the current economic situation in Thailand, she added:"Last year was a good year for us because the market was volatile - the stock market moved and the currency moved, because of all the news about the global economy. We were lucky that we could catch the trends so we could make money.
"However, if you ask me about the economy, I think that Thailand is lucky because of the Bank of Thailand (BoT). It has stringent rules and regulations, but doesn't control the banks, and it has very good, well qualified people working for it. The BoT is very strict,both for local and foreign banks. That's why most of them here weren't affected [by the crisis].
"Thai banks survived the crisis and are generally doing well in comparison to many banks abroad that collapsed because of the 'sub-prime' crisis. They [Thai banks] have plenty of cash and because of it they can lend to their clients, and for that reason the companies here have a lot of money as well.The fact that Thai companies went out buying assets in other regions is because they have access to cheap liquidity and use it as an opportunity to buy cheap assets.
"Thailand is a country with liquidity because the banks were not affected by the crisis. We are an exporting country, so when other countries are not doing well, it is difficult for us to do well, but in general, because we have liquidity, the country has the money to muddle through the crisis.
"The worst of the financial crisis in Thailand is most probably over. However, political uncertainties and rumours in the market are factors that discourage investors who can choose to invest somewhere else," she warned.
And she had some advice for foreign investors:"If you ask me for advice for corporate investors, I'd need some parameters before I could advise what company or sector they should look at.
"But for those coming here as individuals,I strongly recommend they invest in property in Bangkok, especially in the business districts.This is a very attractive investment and you can make money. To me, Bangkok is Thailand.Twenty per cent of the Thai population live here and the numbers are increasing every day. If you can't afford to invest in these areas, then buy a piece of property on the outskirts of Bangkok. As long as it's within Bangkok, you will be fine. All the infrastructure will come to you. With our current pace of development, I can't really see Chiang Mai or Khon Kaen becoming Boston or Manchester in the near future - you're not going to make money there.
"Thailand is a good place for foreigners to invest - great infrastructure, rigid laws and regulations, a strong financial system. We may have instability on our politics, but we all know by now that it is just 'our way of life'.
"We might not have been able to come this far without this instability," she stressed,adding:"I haven't found a foreigner who has a negative view of Thailand. They all love Thailand. Sometimes I ask myself whether Thai people love Thailand as much, whether we are proud to be Thai and say enough good things about our country.
"Of all the foreign banks in Thailand, I'm the only female who does this kind of work.The others are all men. This job is very demanding, especially for a woman with three children to look after, plus I do a lot of travelling abroad."
On her priorities, both personal and in business, Ms Ornkanya said:"I work for the bank, so I want the bank to be successful,because then I will be as well. As for my personal life, my priority is to make sure that my kids are doing well in a secure environment.
"As to the future, I'm at the top at Deutsche Bank, so what next? Whatever happens, I want to live and work in Thailand. When I was young, I used to think about working abroad, but not now. If you talk about job security, or your value to an international firm, it is here."
Commenting on her biggest achievements and failures, she said:"To have my three beautiful kids and to be a good mum to them. My family and my job are equally important to me, but of course, family is the most important. I can walk away from being a Deutsche Bank executive, but not from being a mother. No major failures as yet,definitely not in my business."
As for her biggest challenges, Ms Ornkanya said:"Maybe I'll sit here for another few years. I need to move on at some time so my people can grow. One day, I'd like to be in politics to be able to do something for my country. My day-to-day work gives me the opportunity to get to know people and to understand their organisations and their needs. I'm making my way up there. I was approached to join a political party, but I haven't made any decision at this time. Don't you think Thai politics has many more colours than other countries? It can get you into a big fight with your best friend, and make your parents stop talking to each other."
Ms Ornkanya attributes her success to her parents, who are also her role models:"My mum gave me self confidence and my dad gave me a great sense of humour. When people have self confidence, they tend to be surrounded by smart people.
"And a sense of humour stops you from becoming arrogant. By the way, I'm not that successful, I have another 20 years to go before retirement. Let's talk about my 'success'then."
Finally, Ms Ornkanya had some advice for young Thai women:"You should be committed and persistent in whatever you do.We have to make choices every day, so make sure that you make the right choices. Women always make decisions based on emotion.That's why we make wrong choices all the time. I have made wrong choices, and I have to live with them," she said without elaborating.
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