Private & Confidential NOV 2014 Evolving Role & Relevence of Asian Exim Banks – Path to 2020 Export – Import Bank of Thailand

Rationale for setting-up  Thailand gradually shifted from Agriculture based economy to Industrial based economy.  To impose Export-Oriented Policy, Thailand has entered into free trade agreements with many countries.  With its tariff reform, Thai exports had an average growth rate of 17.3%.  High Cost of funds influenced the ability of Thai Commercial banks to support International Trade Finance effectively. 2 During EXPORT - IMPORT BANK OF THAILAND was established under the Export-Import Bank of Thailand Act B.E Bank of Thailand transferred its Packing Credit Facility to EXIM Thailand. EXIM Thailand introduced Short- term Export Credit Insurance.

Rationale for setting-up 3 EXIM Thailand had launched Overseas Investment Facility in 1994, MLT Insurance in 1999 and Investment Insurance in 2007 respectively present  58.3% of Thailand’s GDP are contributed by export sector.  Export of capital goods and services and overseas investment are increasing.  Overseas Project Finance was new to Thai commercial bank.

Experience so far 4  EXIM Thailand remains focus on its role as “a development bank which promotes and supports Thailand’s exports and imports as well as domestic and overseas investment” 2,110 MUSD of loan outstanding as of DEC 2013 classified by industry Average growth 19.76% p.a.

Experience so far 5 4,040 MUSD of insured export bills turnover as of DEC 2013 covering buyers in 79 countries

Is EXIM Thailand still relevant and effective? 6 “Thai and foreign financial institutions have been very active in supporting Trade Finance and Overseas investment transaction specially in ASEAN region” Still have opportunities but have to adapt our roles….  Working closely with ECAs and financial institutions to support trade and investment  Using experience/expertise to fill the gap where commercial banks are not functioning by providing financial access for Thai SMEs  Still have an important role especially during the economic crisis

Constraints for future growth 7 Retail Deposits are prohibited No Annual Government Budget Allocation Cost of Funds No Overseas Branches & Offices Human Resources Lack of first hand information Unable to lend in local currency Unable to provide full services More training required to become experts in specific areas High turnover rate How to overcome constraints  Seek alternative sources of fund  Manage NIM  Government support  Working with local financial institutions, local government entities and advisors  Training Roadmap  Employees’ benefits

What lies ahead? 8 Beside a mandate to promote and support Thai trade and investments, EXIM Thailand also focuses on…  Provide financial and related non-financial services to enhance Thai SMEs’ international trade competitiveness particularly in the ASEAN Community  Seek cooperation with the government – private sectors as well as the financial institutions.  Respond to the public promotion policy for exports and Thai investments abroad

How to evaluate performance? 9 Evaluated by Ministry of Finance Quantitative Evaluation ApproachesQualitative Evaluation Approaches  Loan Outstanding  Export Insurance Turnover  Numbers of SME Customers  NPLs  Financial Ratio, e.g. ROA, ROE  Customer Satisfaction  Employee Satisfaction  Effective and Efficient Management System

AEBF’s synergistic role in charting a Path to Exchange Information & Experiences Human Resources Development Collaborate to promote Trade and Investment  exchange information, knowledge, experiences, and obstacles when each member provides services in other countries and industries  develop information database  develop appropriate training program  exchange staffs among each member  Loan  Guarantee / re-Guarantee  Export Credit Insurance  Political Risk Insurance