Business Model and Profitability of Commercial Banking in Thailand
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Abstract
The purpose of this research is to study the banking business model inside of funding, income, and profitability of commercial banks in Thailand 2 groups, which are commercial banks registered in Thailand and foreign commercial bank branches. This study using quarterly time-series data from the 3rd quarter of the year 1999 to the first quarter of 2020, a total of 83 sets, and analyzed the data using multiple linear regressions by Ordinary least squares method. results found commercial banks registered in the country have a traditional business model that mainly have funds deposits and having income from loans Unlike foreign bank commercial branches have a non-traditional banking business that provides financing another, and find income from investments and other financial services as for the profitability of the commercial banks, it is found that both groups of commercial banks have level low profitability. In addition, it was found that financing by borrowing and issuing debt instruments has reduced the bank's profitability. But finding income from investment in securities affects the ability to make a profit in the same direction.
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The articles published in the journals are the authors' opinions, not the opinion of the editorial team or administrative staff. The articles published is copyright of the Journal of Business Administration and Accounting, Khon Kaen University.
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