Thailand's LH Bank has announced that it is intent on substantially expanding its letter of credit (L/C) and other trade finance operations in response to the continued growth of the country's exports and imports.

The move follows the acquisition in July 2017 of a 35.6 per cent stake in LH Bank by CTBC Bank, one of the largest privately owned financial institutions in Taiwan.

LH Bank says it will expand its trade finance business with the support of CTBC Bank and its extensive network across 14 countries.

Existing customers

The first stage in LH Bank's trade finance expansion strategy will focus on developing and selling offerings for CTBC Bank's and LH Bank's existing customers.

These offerings would then be targeted at new markets, including China.

Competitive rates

According to LH Bank's CEO and president, Sasitorn Phongsathorn, the bank's trade finance fees and interest rates will be lower than its competitors. Services provided include import, export and standby L/Cs.

The bank's trade finance services will all be US dollar denominated at first while other currencies will be introduced in the near future.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.