THAILAND'S banking sector is now poised for healthy growth after a rough stretch in the early 1980s when one bank collapsed.
Industry officials expect total assets to jump more than four-fold to US$450.1 billion by 2002 compared with $102 billion at the end of last year.
Despite this increase, Mr Thanong Bidaya, president and chief executive of the Thai Military Bank (TMB), said many commercial banks will still require co-operative agreements with foreign banks to meet the capital needs of Thailand's ambitious infrastructure plans.
Over the next eight years he said Thailand will spend $50 billion on infrastructure, highlighted by the installation of three million telephone lines, an electric train system and highway construction.
''Thai banks are too small to support development of the economy,'' he said during a visit to Hongkong.
''Thai banks and outside banks have to co-operate in large syndicated pools to develop large-scale projects.'' Mr Bidaya said co-operation with foreign banks would benefit Thailand's banking sector by introducing much-needed technology and encourage the use of investment tools such as options and swaps.
