Thai Bank Operations React to Conflict With Cambodia
Thailand and Cambodia’s border conflict is in its fourth day after first starting last week. Thai banks have been responding operationally to the situation, which remains uncertain.
On July 24, a conflict broke out between Thailand and Cambodia over a border dispute that dates back to a treaty in the early 1900s. This was not the first clash this year as the two Southeast Asian nations had a brief skirmish in May before escalating into the latest armed conflict.
The conflict is now in its fourth day with at least 35 people killed and over 200 injured, according to figures from Thai and Cambodian officials. The impact is being felt from all walks of life, including the banking sector.
Closed Branches, Employee Repatriation
Banks in Thailand have been responding to the situation with some temporarily closing branches located in border provinces, according to a statement by the Thai Bankers’ Association, including leading local lenders Kasikornbank, Siam Commercial Bank, Bangkok Bank, Krungthai Bank and Bank of Ayudhya.
Thailand’s central bank also confirmed that financial institutions with branches in Cambodia had been progressively bringing Thai employees back home.
According to the Bank of Thailand (BOT), it is closely monitoring the situation, noting that there have been no reports of damage thus far to any financial institution's branches. Customers can continue to transact via alternative channels like mobile banking and internet banking.
International Players
Although Thailand is not a major hub like its regional neighbors Hong Kong or Singapore (Bangkok ranks as the 96th international financial center out of 119, according to an index by think tanks Z/Yen Group and the China Development Institute), there are several global players operating in the country, most notably in private banking.
HSBC’s private banking arm entered the onshore market in 2021 and, more recently, BNP Paribas Wealth Management launched an onshore business in 2024. Julius Baer also has a local wealth management joint venture with Siam Commercial Bank.
While uncertainty persists, there is reason for hope as Cambodia and Thailand will meet today in Kuala Lumpur, Malaysia, for peace talks. US officials will be on the ground to assist with the negotiations, said Secretary of State Marco Rubio in a statement.
