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.