Determinants of Bank Performance in Thailand: Foreign vs. Domestic Banks

  • Sasin Kirakul
Keywords: Determinants of bank performance, domestic banks, foreign banks


The purpose of this study is to identify the determinants of foreign banks’ performance in Thailand compared to those of domestic counterparts using bank-specific, macroeconomic, and multinational factors. The findings indicate a statistically negatively significant impact of asset size and GDP growth, a positive effect of capital adequacy ratio, and a mixed influence of liquidity risk on the performance of domestic banks. For foreign banks, significant and positive determinants of bank performance are liquidity risk, cost-to-income ratio, and capital adequacy ratio, whereas the trade relationship between the home country and Thailand is negatively significant for foreign banks’ profitability.


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