rbc in thailand
Case Study: Royal Bank of Canada in Thailand
1. What were RBC’s ultimate goals in opening a representative office in Thailand?
When RBC opened a representative office in Thailand in the early 1980’s, its ultimate goal was to obtain a full branch license. RBC felt that Thailand had the potential to become a regional financial center, and they certainly wanted to have an established presence in a country with this sort of opportunity. RBC also had the corporate goal of increasing the amount of its business generated from non-Canadian sources. With RBC locations in Asia already accounting for 16% of their total international earning assets, opening a new branch in Asia seemed likely to help achieve the bank’s corporate goal.
2. How large is the initial staff for the office and what is the estimated pretax profit?
The initial staff of the office was five people; a general manager that was already an experienced banker within the RBC network, and the other four staff members were hired locally. The estimated pretax profit is $170,000.
3. What are RBC’s four major business lines in its Asia Pacific network?
RBC’s four major business lines in its Asia Pacific network are: financial institutions and trade, multinational lending, treasury services, and global private banking.
4. What are the limitations of BIBF licenses? A BIBG license allows a bank entry into a strictly controlled marketplace with several restrictions in place. Some of these restrictions are: foreign banks are limited to just one office, banks cannot deal in local currency, only certain transactions can be undertaken, and banks making loans need to borrow those funds from overseas.
5. What are the advantages of the possible upgrading of RBC’s operations in Thailand to a branch status?
The advantage of the possible upgrading of RBC’s operations in Thailand to branch status is that some of the BIBF license’s limitations are no longer in place. A bank in Thailand
1. What were RBC’s ultimate goals in opening a representative office in Thailand?
When RBC opened a representative office in Thailand in the early 1980’s, its ultimate goal was to obtain a full branch license. RBC felt that Thailand had the potential to become a regional financial center, and they certainly wanted to have an established presence in a country with this sort of opportunity. RBC also had the corporate goal of increasing the amount of its business generated from non-Canadian sources. With RBC locations in Asia already accounting for 16% of their total international earning assets, opening a new branch in Asia seemed likely to help achieve the bank’s corporate goal.
2. How large is the initial staff for the office and what is the estimated pretax profit?
The initial staff of the office was five people; a general manager that was already an experienced banker within the RBC network, and the other four staff members were hired locally. The estimated pretax profit is $170,000.
3. What are RBC’s four major business lines in its Asia Pacific network?
RBC’s four major business lines in its Asia Pacific network are: financial institutions and trade, multinational lending, treasury services, and global private banking.
4. What are the limitations of BIBF licenses? A BIBG license allows a bank entry into a strictly controlled marketplace with several restrictions in place. Some of these restrictions are: foreign banks are limited to just one office, banks cannot deal in local currency, only certain transactions can be undertaken, and banks making loans need to borrow those funds from overseas.
5. What are the advantages of the possible upgrading of RBC’s operations in Thailand to a branch status?
The advantage of the possible upgrading of RBC’s operations in Thailand to branch status is that some of the BIBF license’s limitations are no longer in place. A bank in Thailand