sme development bank of thailand
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SME Development Bank of ThailandSME Development Bank of Thailand
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The BankThe Bank’’s Historys History
Established as the Small Industry Finance Office (SIFO) under the Department of Industrial Promotion, Ministry of Industry to provide financial support to small industries
As a government-owned financial institution and solely funded from the National Budget, SIFO’s services was limited and could not enjoy all the flexibility enjoyed by other FIs
Established as the Small Industry Finance Office (SIFO) under the Department of Industrial Promotion, Ministry of Industry to provide financial support to small industries
As a government-owned financial institution and solely funded from the National Budget, SIFO’s services was limited and could not enjoy all the flexibility enjoyed by other FIs
The government has a long history in supporting small and medium enterprises. In 2002, it changed the role and name of the Policy Bank to Small and Medium Development Bank of Thailand (SME
Bank), with the objective of providing financial and developing services to SMEs
Re-established by Act of Parliament as the Small Industries Finance Corporation (SIFC) under the Ministry of Finance and Ministry of Industry
Re-established by Act of Parliament as the Small Industries Finance Corporation (SIFC) under the Ministry of Finance and Ministry of Industry
Commenced operations in Jan 1993 with an initial registered capital of THB 300 million, SIFC was able to source funds both domestically and overseas
Commenced operations in Jan 1993 with an initial registered capital of THB 300 million, SIFC was able to source funds both domestically and overseas
SIFC was recapitalized to THB 2.8 billion, with Ministry of Finance holding 92% of the shares SIFC was recapitalized to THB 2.8 billion, with Ministry of Finance holding 92% of the shares
Reactivated by Act of Parliament as the Small and Medium Development Bank of Thailand (SME Bank) under Ministry of Finance and Ministry of Industry. SME Bank was formally established on 20 Dec 2002 with all assets, businesses, debts, capital, profits, reserves, etc transferred from SIFC. The authorized capital has been increased to THB 10 billion
Reactivated by Act of Parliament as the Small and Medium Development Bank of Thailand (SME Bank) under Ministry of Finance and Ministry of Industry. SME Bank was formally established on 20 Dec 2002 with all assets, businesses, debts, capital, profits, reserves, etc transferred from SIFC. The authorized capital has been increased to THB 10 billion
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Vision and MissionVision and Mission
Vision
“To be a financial institute that assists and supports SMEs”
Mission
- Support the government policies to assist and support SMEs
- Financially serve and respond to the needs of Thai SMEs
- Promote and develop Thai SMEs along with the financial assistance
- Develop an innovative communication technology and effective organization
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The Importance of SMEs to the The Importance of SMEs to the
ThailandThailand’’s Economys Economy
Employment Creation
Employment Creation
Generating Foreign
Currency Income
Generating Foreign
Currency Income
Development for Various
Types of Skills
Development for Various
Types of Skills
Linked with Businesses of
Large Enterprises
Linked with Businesses of
Large Enterprises
Creation of New
Entrepreneurs
Creation of New
Entrepreneurs
Creating Competition and a High
Quality Service Culture
Creating Competition and a High
Quality Service Culture
Increasing Utilization of
Domestic Products
Increasing Utilization of
Domestic Products
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Overview of the SME Sector in ThailandOverview of the SME Sector in Thailand
Number of Fixed Assets Number of Fixed AssetsEmployees excl. land Employees excl. land
(THB mm) (THB mm)
Manufacturing 50 or less 50 or less 51-200 > 50 to 200
Service 50 or less 50 or less 51-200 > 50 to 200
Wholesale 25 or less 50 or less 26-50 > 50 to 100
Retail 15 or less 30 or less 16-30 > 30 to 60
Small Medium
Production Value 39.4% of GDP (Not included Agriculture) Export Value 29.0%of Thailand Total Employment 76.4%of Thailand Total Employment
Production Value 39.4% of GDP (Not included Agriculture) Export Value 29.0%of Thailand Total Employment 76.4%of Thailand Total Employment
98.6% of all enterprises are SMEs
98.6% of all enterprises are SMEs
SME Classification: by employment and fixed assets
DefinitionDefinition
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Unique Position in ThailandUnique Position in Thailand’’s Bank s Bank
MarketMarket
Government Savings Bank
“People’s Bank”To develop human capital
Bank of Agriculture and Agricultural Cooperatives
“Rural Development Bank”On-farm and off-farm community enterprises
SME Development Bank of Thailand
“SME Bank”Building an entrepreneurial society
Total SolutionsSmart SMEs, First-time exporters
Export-ImportBank of Thailand
“Exporter’s Bank”Full banking service
Export insurance and investment abroad
These policy banks collaborate to develop the grass-root economic system…
…but each bank has its own client base
Specialized Financial Institutions for SMEs
SME Bank is set-up as an organization for which profit maximization is not the primary goal - it is the Bank’s policy not to compete with commercial banks
SME Bank collaborates with other special financial institutions and provides funding to SMEs which cannot obtain loans from commercial banks
SME Bank does not compete directly with the other SFIs - Bank of Agriculture and Agricultural Cooperatives and Government Savings Bank performs lending roles with an emphasis on different areas
Smalll Business Credit Guarantee Corporation (SCBG)
To provide Credit Guarantee for SMEs’s loans approved by banks.
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NetworkNetwork
1,614 Officers
9 Zones + 1 Bureau
5 Regional Offices
99 Business Development Centers
CreditCredit & Service& ServiceCreditCredit & Service& Service
General LoansGeneral Loans General LoansGeneral Loans
Long-termShort-termCommercial FacilitiesFactoring LoanLeasing and Hire-PurchaseLG
Policy and Special LoansPolicy and Special LoansPolicy and Special LoansPolicy and Special Loans
OTOP ,Grass RootsOTOP ,Grass Roots• Loans to Reslove Loans to Reslove Poor People’s DebtsPoor People’s Debts• OTOP LoansOTOP Loans
ServicesServicesServicesServices
Joint Venture Business DiagnosisBusiness TrainingBusiness Planning & DevelopmentMarketingNetworking
New SMEs Support New SMEs Support LoanLoan
• Franchise LoanFranchise Loan• sme Power for Tourism sme Power for Tourism • Loans for Small BusinessesLoans for Small Businesses
Food Business Support GroupFood Business Support Group• Thai Cuisine to the Thai Cuisine to the WorldWorld• Food Safety from Food Safety from Farm to ConsumerFarm to Consumer
SMEs Capacity SMEs Capacity
Development LoansDevelopment Loans •Machine FundMachine Fund•Machine Hire-Machine Hire-Purchase LoansPurchase Loans•Loans to Facilitate Loans to Facilitate Borrower’s Borrower’s Business RecoveryBusiness Recovery•SMEs PowerSMEs Power•Loan Aimed to Slow Loan Aimed to Slow Down LayoffsDown Layoffs
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SME Development ServicesSME Development Services
New Entrepreneur Creation Program,
Accounting System and Software Application
POS System Training for Small Retail Business
Intellectual Property Management Training
Tax Laws and Planning Training
Modern Financial Management Training
Market Research and New Product Development Training
Free of charge to access SME Bank’s publicity channels
SME Operation Diagnosis Service
Workshops (In-house Training & On the job training)
Service of On-site Deep Counseling
Business Counselling Services
Marketing Services
Business Development
Services
Example LoanExample LoanExample LoanExample Loan
• Sme POWERSme POWER• Loans to help sustain Loans to help sustain employment and minimize employment and minimize layoffs layoffs • Sme POWER for Tourism Sme POWER for Tourism OperatorsOperators• SME Power for a New Start” Project• OTOPOTOP
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Loans to help sustain employment and minimize layoffsLoans to help sustain employment and minimize layoffs
Support SMES who were effected from Support SMES who were effected from Economic Crisis to operate and minimize Economic Crisis to operate and minimize
layoffs or expand increase in employment layoffs or expand increase in employment
Credit AmountCredit Amount
CollateralCollateral
Interest RateInterest Rate
Target GroupsTarget Groups
CriteriaCriteria
ObjectiveObjective
SMEs who registered and SMEs who registered and allowed in commitment with allowed in commitment with
Social Security OfficeSocial Security Office
Not over 50 Million Baht (Credit Amount of
Project 6,000 million baht ) 5% 5 years (Not over
year 2014)As usual Criteria
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“ “ OTOP Loan”OTOP Loan”
Fees
Support in Funding . Production Support in Funding . Production System, Management, System, Management,
Product ,Marketing and Distribution Product ,Marketing and Distribution Channel Channel
Credit AmountCredit Amount
Interest Rate Interest Rate
Type of Loan Type of Loan
Target GroupsTarget Groups
CriteriaCriteria
ObjectiveObjective
Individual Person or General OTOP Individual Person or General OTOP Entrepreneurs who were guaranteed Entrepreneurs who were guaranteed by government organization such as by government organization such as
Mister of Industry , Mister of Industry , Minister of Commerce, etc.Minister of Commerce, etc.
Total 5,000 Million BathTotal 5,000 Million Bath Lending from 50,000 not Lending from 50,000 not
over 1,000,000 Bath Per case over 1,000,000 Bath Per case 1.1. Term Loan : Not over 5 Term Loan : Not over 5
yearsyears2.2. Short Term Loan : P/N Short Term Loan : P/N
MLR +1 % Per Year MLR +1 % Per Year
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“ “ OTOP Loan”OTOP Loan”
1,000 Bath Per case1,000 Bath Per case
Collateral Collateral
Fee Fee
1.1. Individual PersonIndividual Person2.2. Juristic Person Juristic Person 3.3. Cross Guarantee between Cross Guarantee between
Individual Person and Juristic Individual Person and Juristic PersonPerson
4.4. Others Others ( ( As the regulation of As the regulation of SME Bank SME Bank ) )
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Example of OTOP EntrepreneurExample of OTOP Entrepreneur
BHUTESUAN BHUTESUAN MASKSMASKS
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Others Others ActivitieActivitie
s s
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Mass Communication for ClientsMass Communication for Clients
Visit SME BANK Entrepreneurs by mass media for helping inPublic Relations includingcreating SMEs image
Visit SME BANK Entrepreneurs by mass media for helping inPublic Relations includingcreating SMEs image
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SME CatalogueSME Catalogue
SME Catalogue for publishing SME BANK’s Client Product over 500 businesses targetgroup both domestic and internationalpurpose to support with increase in channel marketing
SME Catalogue for publishing SME BANK’s Client Product over 500 businesses targetgroup both domestic and internationalpurpose to support with increase in channel marketing
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Market PlaceMarket Place
Holding the activities for helpingSME BANK’s Client to sell their products
at various place such as SME BANK TOWER and move on to government
organization and alliance place in domestic and international
i.e.Ministry of Finance, Ministry of Industry,PTT included other province of Thailand
Holding the activities for helpingSME BANK’s Client to sell their products
at various place such as SME BANK TOWER and move on to government
organization and alliance place in domestic and international
i.e.Ministry of Finance, Ministry of Industry,PTT included other province of Thailand
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Business Diagnosis Business Diagnosis
Shin – Dan Program
-Diagnosis and Kai-zen for
SME BANK Clients
-Seminar to prepare
for improvement
and
- Consulting for implementation
Shin – Dan Program
-Diagnosis and Kai-zen for
SME BANK Clients
-Seminar to prepare
for improvement
and
- Consulting for implementation
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Business MatchingBusiness Matching
Holding Business Matching with Japan Finance Cooperation
in Automobile
and Electronic Spare Parts Cluster
Holding Business Matching with Japan Finance Cooperation
in Automobile
and Electronic Spare Parts Cluster
THANK YOUTHANK YOU
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