The aim is to boost border trade between the two countries. The programme will focus on bank-based import-export settlements and boost the cross-border transfer of funds via Mae Sot Border Trade Business Center by about THB200 million, according to a statement released by the two banks on Tuesday.

To date, the center has granted credits of more than THB150 million to businesses in Mae Sot for investment in Myanmar.

Mr. Kittichart Potithat, First Vice President for World Business Strategy and Marketing Management Department of KBank, said the bank has always placed importance on Myanmar market, given its large volume of border trade with Thailand.

Between April 1, 2017 and February 16, the value of goods traded at the Thai-Myanmar border hit some $1.3 billion, which is up by $92 million compared to the same period last year, according to government media.

Myanmar imports mainly industrial machinery, vehicles, fuel oil, fertilisers and construction materials at the Thai border, while exporting fish, prawns, onions, sesame and forestry products to its neighbour.

Exchange programme

Under the exchange programme, staff from both banks will sent to work in branches of the other bank across the border for one year. The aim is for each side to gain expertise on the business operations and banking regulations of the other as well as gain consumer insights on financial services, Mt Kittichart said.

“Moreover, KBank staff under this staff exchange program can help advise Myanmar entrepreneurs on how to conduct financial transactions in Thailand, thus allowing both Thai and Myanmar entrepreneurs to conduct border trade transactions more smoothly,” he said.

He added that Thai SMEs still need help to understand Myanmar’s banking system and seek reliable channels to connect with business partners in Myanmar. Meanwhile, Myanmar SMEs want to use financial products and services offered by Thai banks, but have been limited by communications barriers.

“Therefore, it is hoped that this cooperation will help enhance knowledge and understanding about financial and border trade transactions between the two countries. In 2018, KBank will offer financial facilities to support border trade as always, focusing on cross-border money transfer services,” he said.

“KBank will also place a greater emphasis on cross-border funds transfer to promote import-export settlements via regulated banking system because nearly 100 per cent of such transactions now are settled through non-regulated systems,” he added.

KBank and KBZ Bank have also jointly developed cross-border payment services enabling the transfer of funds and a Myanmar worker remittance service to enable Myanmar workers in Thailand holding KBZ Bank accounts to transfer money back to Myanmar.

Source: https://www.mmtimes.com/news/kasikorn-kanbawza-cooperate-boost-border-trade.html