mr. wiboon perm-arayawong, president thai credit guarantee corporation (tcg) apr 25, 2012 credit...
TRANSCRIPT
Mr. Wiboon Perm-Arayawong, President Thai Credit Guarantee Corporation (TCG)
Apr 25, 2012
Credit Supplementation for SMEs: Thailand Case Study
35th ADFIAP MeetingIstanbul, Turkey
35th ADFIAP ANNUAL MEETING, ISTANBUL, TURKEY
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Presentation Outline
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Thailand
Area (km2) 513,120 513,120
GDP (mil USD) 318,522318,522
GDP-PPP (USD) 4,1504,150
Population (mil) 6969
No. of Enterprises 2,924,9122,924,912
No. of SMEs 2,913,1672,913,167
% to Population 4.214.21
% to Total Ent. 99.5999.59
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Bank
Thai’s Credit Guarantee System
Loan requests
Loans disbursement Claim payment
Letter of Guarantee issue
Claim submission when legal action is taken against the borrower.
Public Policies, Capital and Loss Compensation
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Application for Guarantee2SMEs
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Thai Credit Guarantee (TCG)
A state-owned specialized financial institution (SFI) under the supervision of the Ministry of Finance.
Established on December 30, 1991 as the sole Credit Guarantee Corporation in Thailand to assist viable SMEs to access to finance.
There are 9 Offices covering all regions throughout Thailand.
Chiang Mai
Phitsanulok
UdonThani
Nakhon Ratchasima
Chonburi
Ayutthaya
Suratthani
Songkhla
Bangkok and Greater
Bangkok Office
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Annual SME Outreach 2006-2011(Million THB) No. of Guarantee Issued
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Statistics of Credit Guarantee & NPG (FY 2003-2011)
(Million THB)
2003 2004 2005 2006 2007 2008 2009 2010 2011 Cumulative
Approved Guarantee
Outstanding Guarantee
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Percent of Outstanding Guarantee to Total SME Loan
(Mil. THB)(%)
2,494,084
2,732,149 2,774,7142,906,745
2,608,806
2,853,907
3,291,750
Accumulated Job Creation
2003 2007 2008 2009 2010 2011200620052004
108
66
27 34 4144
1915
ADDITIONALITY
Cumulative Approved Loan Guarantee
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Financial Sustainability
Retained Earnings
Annual Net Income
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1.5 Lesson Learned
• Thailand had lost opportunity to assist SMEs to access to finance effectively for 17 years with individual guarantee only.
• Portfolio guarantee scheme was proved to be more effective than individual guarantee
• Partial credit guarantee (PCG) is an effective public support scheme for crisis-response.
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Thai SMEs
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OUTSTANDING LOAN OF ALL BANKSBillion THB (Exchange Rate 30 THB/USD)
5 Yrs Avg. Growth Rate:Large 23.0 % p.a.Medium 8.8 % p.a.Small 2.3 % p.a.
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NUMBER OF BORROWERS
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2 /3 of SMEs Don’t Borrow from Banks
How did this 2 million SMEs
finance themselves?
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Target SMEs
Ration of SMEs (classified by group) from the total number of SMEs in Thailand (approximate 3 million SMEs)
Source: In 2009, OSMEP estimated the total number of SMEs throughout Thailand at 2,914,912 SMEs.
Group 3 Guesstimate 600,000 SMEs
Group 1
Group 2Group 4
Group 5
Group 6
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BANKS’ SME LOANS
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CURRENT LOAN GUARANTEE
% Guarantee to Their SME Loan
% Guarantee to Their SME Loan
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Strategic Direction
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Strategy MapStrategy Map
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PROVIDE THE BEST TOTAL SOLUTION TO OUR CUSTOMERS
IMAGE
Fast Convenience Reliable Consultant Training Partner National Credit Guarantee Institute
PRODUCT / SERVICE ATTRIBUTES RELATIONSHIP
FinancialPerspective
CustomerPerspective
InternalPerspective
Learning & GrowthPerspective
Growth StrategyGrowth Strategy Productivity StrategyProductivity Strategy
Risk Based PricingRisk Based Pricing
New Customers
New Products &
Services
CustomerPenetrations
Reduce cost to serve
MinimizeNPGs
Maximize use of Existing Assets
OPERATION MANAGEMENT PROCESSES
CUSTOMER MANAGEMENT PROCESSES
INNOVATION PROCESSES
REGULATORY & SOCIAL PROCESSES
HUMAN CAPITAL INFORMATION CAPITAL ORGANIZATION CAPITAL
Credit GuaranteeManagement
Friendly
NPGs Management
Risk Management
Targeting
Recovery
Growth
Acquisition
Retention
Identify New Opportunities to Serve Customers
Anticipate Future Customer Needs
Corporate Governance
Corporate Social Responsibility
A CAPABLE, MOTIVATED, AND TECHNOLOGICALLY ENABLED WORKFORCE
Values
Skills Knowledge
Core Credit Guarantee Solutions
Decision Support System
Infrastructure
Culture Leadership
Alignment Teamwork