Kasikornbank, in co-operation with Exim Bank, Kasikorn Factoring and Phatra Insurance, has announced a new trade credit insurance and guarantee service. The bank expects to increase the new service to help raise its market share in international trade transactions to 15% by 2005.
According to Teeranun Srihong, Kasikornbank's first senior executive vice-president, the bank now has about 7,000 export customers with a 10% share of the market, worth around 2.9 trillion baht in transactions annually.
Under the programme, Exim Bank, Kasikorn Factoring and Phatra Insurance will offer trade guarantees for exporters, with Kasikornbank providing the required credit facilities. With trade guarantees, exporters could gain access to more sophisticated transaction structures beyond plain letters of credit. Mr Teeranun estimated that one-third of exports were currently made under letters of credit, compared to 50-60% five years ago.
