The Financial Reform of Thailand: after the Asian Financial Crisis (1997-2000)

• Main Authors: Shih-yu Huang, 黃士育
• Other Authors: Tasn-liang Liu
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/40684366774935390929

碩士 === 淡江大學 === 東南亞研究所 === 89 === The occurring of the Southeast Asian Financial Crisis in 1997 made the long-term economically prosperous and successful NICs been through an unprecedented financial big bang. Thailand, as the source of the financial crisis, its economic structure and its financial market has been much heavily influenced than expected. Although the occurring of the financial crisis in Thailand had its own structural economic problem, however, under the financial liberalized and internationalized climate which arisen during the 1990s, the defective monetary system and the inappropriate financial supervision resulted in the financial chaos and became one of the main reason of the financial crisis. Therefore, this paper will dissect the causes of the financial crisis from economic analysis aspect. Soon after Thailand government accepted the help of 17.2 billion U.S. dollars from IMF and other institutions on August of 1997; they proposed a complete and comprehensive financial reform policy on 14th of August of 1998 and adopted effective strategies to proceed diverse financial reconstructions positively, then the macroeconomic situation came stable immediately. But the monetary system still could not be totally solved under its vicious circle of high non-performing loans. The reconstruction process and experiences that the Thailand government had experienced while solving their financial crisis was highly concerned, which mainly comprise: (1) the establishment of specialized institutions and the model of integral operation; (2) the concrete outcome assessment of financial reform; (3) the changes and the future trend of the financial industry. This paper will discuss the inspirations that the financial reconstruction model in Thailand has brought as well as the influences and the follow-up problems after the financial crisis from the cause and effect and the financial industrial condition of the monetary institutional changes in Thailand. Making a comprehensive survey of the financial reform in Thailand, they''ve made substantially changes in laws, monetary institution, policy goals and economic condition. This paper will also discuss based on above-mentioned conditions the changes of competitive situations in Thai financial market under the integrated global financial structure. Especially at present period while many foreign capitals that included Taiwanese enterprises making merger and acquisition in Thailand, which cause strikes to the general financial operations and affaires. Taiwan seems to be lighter damaged than other southeast countries. As the Thai government cancelled their financial industrial restraints, and according to the investments of Taiwanese enterprises in Thailand have achieve a respectable scale, it is a great opportunity for Taiwanese financial industrialist to consider carefully of taking regional financial arrangement to cope with the upcoming global financial service industrial single market. Therefore, this paper will analyze as well the present developments of Taiwanese financial industry in Thailand.