KBank keen to buy Indonesian banks
Thailand’s fourth-largest bank, Kasikornbank, is exploring the possibility of acquiring banks in Indonesia, but acknowledges this is a challenging goal due to the Indonesian regulator’s rules concerning foreign ownership of local banks. The regulations require foreign banks to buy more than one bank, and that the targets must not be strong institutions. KBank president Pipit Aneaknithi said on January 18 that the bank currently had partnerships with two banks in Indonesia, and was prepared in terms of facilities and capital to establish its own footprint in the Indonesian market. While Indonesia has very high potential for KBank and the takeover of local banks is an option, the requirement that foreign banks have to purchase more than one bank is something that it might not be particularly comfortable with, he said. The Bank of Thailand acknowledges this concern, he said, adding that market entry via the Qualified ASEAN Banks scheme is another potential solution for KBank.
