In May 2009, the International Monetary Fund released a report on Thailand’s Financial System and Stability. This report identifies three different ranks from financial firms reporting on financial situations around the world. Specifically, these firms IMF.org (2009) graded Thailand’s largest commercial banks the Bank of Thailand is considered stable and received a BBB+ rating from S&P. Additionally, the report identifies these six banks are holding non-performing loans, meaning these banks have absorbed 1.5 trillion (baht) of debt, which equates to 17.5 percent of Thailand’s Gross Domestic Product (International Monetary Fund, 2009). Moreover, these figures show an improvement since the 1997-98 Asian Financial Crisis and part of the reform Bureau of Economic and Business Affairs (2012) was shifting power of foreign ownership, allowing the Bank of Thailand to increase foreign ownership up to 49 percent on a case-by-case. Further advancement of banking made room for 15 foreign banks with three of them being American banks, to conduct business in Thailand, so long as they maintain $333 million in paid-up-capital (2012 Investment Climate Statement - Thailand, …show more content…
The banking industry around the globe changed in 2008 and in Europe it is changing as Great Britain leaves the European Union. Considering the most recent banking change in Thailand with three US banks located there, this defiantly eased the way for an American company to operate in Thailand. Moreover, dating back to 1833 before Thailand’s Baht existed the United States and Thailand signed the Treaty of Amity and Economic Relations (AER). This treaty affords US citizens to conduct business and be governed by the same the laws, as opposed to other nations who are greater restrictions under the Foreign Business Act (2012 Investment Climate Statement - Thailand, 2012). Furthermore, with the US being one of Thailand’s largest investors with $14 billion in direct investment and another $ 44 billion in 2014 in trade provides US companies with easier access to establish a business (U.S. Relations With Thailand, 2015). Finally, while the US and Thailand have a strong relationship when it comes to import and export, this does not remove a business risk, just lessons the risk. Natural disasters are a risk in all countries, just as the latest in 2011 when Thailand’s financial stability was sunk due to the severe flooding, leaving many business owners with damaged goods, streets flooded