Introduction to the Thai Bank Museum The Evolution of Money The Evolution of Banking The Prototype for Thai banks Siam Commercial Bank’s Advance to the present
The Book Club
The Siam Commercial Bank Company Limited
The Thai Panich (Siam Commercial) Bank
SCB Historical Highlights during 1957 – 2007
The SCB and the development of commercial banking in Thailand
The Government Savings Bank
The Bank of Thailand

The Siam Commercial Bank Company Limited (SCB) opened in 1906 at the former office of the Book Club in Ban Moh district. Phra Sanpakarn Hirunyakij was the manager of domestic affairs and Mr. F. Kilien, a German citizen who represented the foreign shareholders, was the manager of foreign affairs. The founders of the Bank humbly requested King Chulalongkorn’s permission to use his royal crest as the Bank’s emblem.

The Siam Commercial Bank provided general deposit and withdrawal services. A special feature was that it offered two percent interest to current account holders. Since this service enabled customers to obtain optimum benefits from the cash remaining in debit cheque accounts, it soon became popular. The services included loans for business, real estate, and rice mills.

Rice exports from Thailand had nearly quadrupled from an average of 3,850,000 hap (1 hap = 60 kg) per year between 1875 and 1879 to 14,760,000 hap per year in 1907. Having the Bank’s representatives in Europe was helpful to the Thai and Chinese rice traders, who controlled nearly all the rice trade. These rice traders preferred SCB’s service to that of foreign banks, because they spoke a common language and offered better terms and conditions.

As a consequence, business expanded and SCB soon hired Mr. P. Schwarze, an official of German Bank (Shanghai branch) to succeed Mr. F. Kilien as assistant manager for foreign affairs.

Witnessing SCB’s success, wealthy Bangkok Chinese merchants applied for permission to open new commercial banks. As a result, Yu Heng Seng Bank Company (1907), Bangkok City Bank (1909) and The Monthon (Provincial) Bank Limited came into existence.

The burgeoning volume of work required more staff and more space than the Ban Moh building afforded. In 1908, a new office building was completed on the riverbank at Talad Noi in Sampeng district, an important business area. In its greatly-expanded premises, the Bank was able to offer new services like saving deposits for the public. For the first time, Thais had a safe haven in which to place their savings, and a chance to earn interest on it.

In addition, fixed-term deposits, deposit at call, and overdrawn withdrawal were introduced. However, during the Bank’s expansion and relocation to new offices, all of the foreign shareholders withdrew their holdings and the Foreign Affairs Manager resigned. Since then, the SCB has had no substantial foreign shareholders.

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