Mr Piti says cost control is essential for banks in the current environment.
Piti Tantakasem, chief executive at TMBThanachart Bank (ttb), has urged structural economic reform to enable the country to withstand persistent political instability.
Politics can be uncertain and governments may change many times, but the economic structure must remain strong and consistent, he said.
Political Uncertainty
According to Mr Piti, Thailand has grappled with political instability for decades, and businesses and the public have adapted. Combined with sluggish growth, he said this uncertainty has weakened the country’s economic foundation, making a rebuild essential.
“Building a house requires both an architect and a constructor. Politicians or governments are like contractors — many have taken on the job of building Thailand’s house, but almost every new one has torn down the previous design,” said Mr Piti.
Successive governments often attempt to redesign economic policy so they are remembered as the builder, rather than continuing the work of their predecessors.
This constant shift has forced businesses to repeatedly adjust operations to align with changing policies, he said.
Reinvent Thailand
To address structural challenges, the private sector and leading think tanks launched Reinvent Thailand, a white paper aimed at creating a long-term economic blueprint.
The initiative is spearheaded by the Joint Standing Committee on Commerce, Industry and Banking, which represents the Thai Bankers’ Association, the Federation of Thai Industries, and the Thai Chamber of Commerce, alongside the Bank of Thailand, the National Economic and Social Development Council, and the Fiscal Policy Office.
Mr Piti said the participants have no political ambitions, hidden agendas or conflicts of interest. Their sole objective is to seek solutions that can strengthen Thailand’s economy over the long term.
While the private sector has not set specific expectations for the government to adopt the proposals, he said the group would welcome their inclusion in election campaigns or future government policy.
The creators of Reinvent Thailand also invite all Thais and relevant parties to join the platform to rebuild the country.
Banking Operations
Despite economic difficulties, banks are continuing operations and customer support, though Mr Piti acknowledged the number of financially vulnerable clients is increasing while the industry’s capacity to assist them is declining.
Cost control remains a critical strategy for banks as net interest margins narrow amid falling lending rates.
Ttb and other banks recently cut prime lending rates — including the minimum loan rate, minimum overdraft rate and minimum retail rate — but delayed reductions in deposit rates, further squeezing profitability.
Mr Piti said workforce management is a key strategy for controlling operating costs in banking, with early retirement (ER) programmes becoming an important tool.
Banks are now allowing younger employees to apply for ER, partially in response to disruption from artificial intelligence.
“Ttb, the country’s sixth-largest lender by total assets, will maintain its eligibility criteria for its voluntary ER programme this year, available to employees 50 and older. The retirement age remains unchanged at 55,” he said.
“Since the merger of TMB Bank and Thanachart Bank, ttb has continued to reduce both its workforce and traditional branch network. The bank employs around 14,000 staff, down from 20,000 in previous years, and scaled back its physical branches from roughly 1,000 to 400.”