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Bangkok Bank wants to be one of Asia's top regional commercial banks. It's certainly big enough to succeed. But critics say it has become hidebound by tradition, is waning at home and is uncompetitive overseas. Some even argue that the excessive influence of the ruling Sophonpanich family is clouding its judgement. Tony Shale reports
Chartsiri Sophonpanich, the 36-year-old president of Bangkok Bank, has never met Prince Charles, heir to the British throne. But he has a lot in common with the beleaguered royal. Both have had celebrity forced on them through accident of birth. Neither's personality seems suited to stardom and leadership. Both have been groomed to inherit illustrious institutions which are being forced, somewhat painfully, to face up to the shock of the new. But both linger in the shadows of charismatic parents who seem reluctant to give up to their offspring the full responsibility that is their birthright.
Chartsiri is the third member of Thailand's leading financial family to become president of Bangkok Bank, whose total assets are $62 billion. His grandfather, Chin (who, though a Thai national, was also known by his ethnic Chinese name, Tan Piak Chin), was a founder member of the bank when it started up in December 1944 and served as president for 25 years (from 1952) and chairman for 12 years until his death in 1988. And his father, Chin's second son Chatri, also held the post before ascending to the executive chairmanship he still retains.
Chartsiri's family's grip on Bangkok Bank notwithstanding, his elevation to the presidency was tinged with controversy. His predecessor, Vichit Suraphongchai, resigned his post under a cloud that hovered over the bank for close to a year. It was announced in early 1994 that, for reasons of ill health, Vichit would be taking a six-month leave of absence from April of that year. He did not return.
Theories still abound in Bangkok's gossipy financial community as to why this happened. Vichit refuses to comment. But highly placed Bangkok Bank sources say he came into direct conflict with Chatri. "Vichit wanted to change the whole tone of the bank," says one. "He wanted to boost the merchant-banking side of operations in order to build non-interest income and was in favour of a wholesale...