Page 11 - ELITE PLUS MAGAZINE Vol 3

failures. Operational units took the overall target for the year and devised a plan to implement it in their respective lines, such as in cost cutting, deposit mobilization, credit and market share expansion, profit generation and expansion of overseas branches.From 1981 to 1984, Bangkok Bank expanded phenomenally, with asset and credit growth of 20 per cent every year and a large number of new branches opening up all over the country. Naturally quality could not always keep up with growth. The rate of problematic loans rose, simply because we grew a bit too fast. Bangkok Bank had always had a good reputation overseas. We could borrow practically from any bank anywhere. Overseas loans, combined with the already large deposit base at home, permitted us to extend credit to our customers much faster than any other bank in the country. Our position became one of an “over-trade” (credit exceeding deposits) situation. Such an over-trade was in fact not ideal because it was very risky. If there were any hiccups in the economy, the bank would stand to suffer. So we decided to focus a little more on quality and a little less on quantity. The quality control project actually started from the credit department. If I am not mistaken, it was the brainchild of Piti Sithi-Amnuai, one of our senior executives and the bank director. He was in charge of the overall credit operation, and worked with a group of researchers to develop four programmes that covered the entire operation of the bank: credit quality and evaluation, personnel quality, service quality and manage- ment quality.Such programmes were imple- mented throughout the bank, enabling employees to absorb the importance of quality in their respective lines of duty.Monthly industrial and economic reports were issued to all business departments to provide background information and to give guidance on which businesses or industries to grant or tighten credit to. The overall situa- tion of the bank gradually improved. In less than 10 years, Bangkok Bank was no longer overtrading. We grew steadily, with more emphasis on quality. As I mentioned, it’s important to have talented, dedicated people in your team.E+: What do you think about the launch of the ASEAN Economic Community in 2015?There has been a lot of excitement within ASEAN member countries about the coming AEC. In Thailand, many people are cautious that we may not be quite ready to compete successfully because of our handicap in language and technology. But I’m not worried. There are only three countries in ASEAN – Singapore, Malaysia and the Philippines – that have the advantage of language. Singapore may be the most advancedin technology. That’s because they’ve been opened to free trade for a long time and also have a lot of foreign investment.But Thailand has several advantages too. Our country is located strategically in the middle of ASEAN, allowing us to easily connect with and invest in surrounding coun- tries. Thailand’s agriculture industry is quite advanced and is the biggest producer of agricultural products in ASEAN. When the AEC comes about and the whole market expands, the Thai food industry will expand accordingly – and let’s not forget that we also have a big share in overall industrial production. We should try to turn these factors to our advantage. Once the political conflicts subside and we have a reliable government that gives full support to private businesses, Thailand should be able to thrive and move forward with greater speed. I strongly believe that Thai people are capable and efficient. We may look relaxed and easy-going but when necessity calls, Thais can solve problems efficiently and undoubtedlyElite+ 9