[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1987
Kiel Working Paper No. 307
This study reviews the process of financial deepening in Thailand over the period 1970-1985. The success in deposit mobilization is attributed to the branch expansion of commercial banks and attractive interest rates. On the lending side inefficient allocation of funds and lack of long term finance are mainly the result of selective rediscount policies of the Central Bank. Lower barriers of entry especially for new and innovative financial institutions together with an improved supervisional framework are suggested to reach both enforced competition and the stability of the financial system.