Comparison of Banking Sector and Financial Marketsof Italy & Thailand

SAJJAD HUSSAIN

ITALYTHE ECONOMY OF ITALY IS THE 3RD-LARGEST NATIONAL ECONOMY IN THE EURO ZONE, AND THE 8TH-LARGEST BY GDP IN THE WORLD. THE COUNTRY IS A FOUNDING MEMBER OF THE EUROPEAN UNION, AND THE G8. ITALY IS THE EIGHTH LARGEST EXPORTER IN THE WORLD WITH $514 BILLION EXPORTED IN 2016. ITALY’S ECONOMY HAS SHRUNK BY AROUND 10 PER CENT SINCE 2007, AS THE COUNTRY SUFFERED A TRIPLE-DIP RECESSION DUE TO FINANCIAL CRISIS. BUT NOW ITALY’S ECONOMY RETURNED TO GROWTH.

THAILANDTHAILAND IS A NEWLY INDUSTRIALIZED COUNTRY. ITS ECONOMY IS HEAVILY EXPORT-DEPENDENT, WITH EXPORTS ACCOUNTING FOR MORE THAN TWO-THIRDS OF ITS GROSS DOMESTIC PRODUCT (GDP). THAILAND IS THE SECOND-LARGEST ECONOMY IN SOUTHEAST ASIA, AFTER INDONESIA. HOWEVER, THAILAND'S ECONOMY HAS LOST SPEED AND BADLY SUFFERED FROM THE POLITICAL UNREST IN THE COUNTRY SINCE 2013. AND STILL STRUGGLING TO REGAIN ITS GROWTH MOMENTUM.

ITALY THAILANDGDP $2.213 trillion $409.72 billion

Ranking (GDP) 8 28

Population 60.67 million 67.96 million

Currency EURO BAHT

Financial Regulatory Authority

CONSOB SECT

BANKING SECTOR OF TALY & TAHILAND

ITALY THAILANDCENTERAL BANK BANCA D’ITALIA BANK OF

THAILANDTOTAL ASSETS $4177 BILLION $470 BILLIONNUMBER OF BANKS 635 2,037

NUMBER OF BANKS AND CATEGORIES

ITALYCategories Number of

BanksBanks established as SpA

167

Cooperative banks

29

Mutual banks 355Braches of foreign banks

84

Total 635

THAILANDCategories Number of BanksCommercial banks 31Specialized Financial Institutions

6

Money Market Mutual banks

355

Saving cooperatives & Credit Unions

1,960

Total 2,037

TOP FIVE BANKS

ITALYRank

Name Assets

1 UniCredit $938 billion

2 Intesa Sanpaolo $749 billion

3 Cassa Depositi e Prestiti

$440 billion

4 Banco Monte dei Paschi

$171 billion

5 Banco Popolare Societa cooperative

$129 billion

THAILANDRank

Name Assets

1 Bangkok bank $83 billion2 Krungthai Bank $81 billion3 Siam commercial

bank$ 81billion

4 Kasikorn Bank $70 billion

5 Bank Ayudhya $35 billion

%Share of Top Five Banks’ in Total Assets of Banking Sector

UniCredit22%

Intesa Sanpaolo

17%Cassa Depoiti

10%Banco Monte

4%

Banco Popolare3%

Others43%

italyBangkok bank

15%Krungth

ai15%

Siam com-

mercial bank15%

kasikorn bank13%

Bank Ayudhya6%

Others36%

thailand

Loan Facilities to Different Sectors

General gov-ern-ment3%

Financial compa-

nies21%

Non financial companies

48%

Households23%non profit institute

0%rest of the world

4%Unclassified

0%

ITALY

Gov-ern-metn1%

state enter-prises

0%

funds0%

busi-nesses

41%

individ-uals35%

domestic banks17%non-profit organi-

zations0%

overseas financial institu-tions0%

non-res-idents

5%

THAILAND

Role of Central BankBank of Italy (Banca D’Italia) Monetary Policy Foreign exchange market &

official reserves Operations on behalf of the

Ministry for the Economy & Finance

Investment Portfolio Payment system Market supervision Payment system oversight Treasury function Economics, research and

international relations Crisis management

Bank of Thailand Print & issue banknotes and

other security documents Promote monetary stability

and formulate monetary policies

Manage the BOT’s assets Provide banking facilities to

the government & act as the registrar for the government bonds

Provide banking facilities for the financial institutions

Establish or support the establishment of payment system

Supervise & examine the financial institutions

Manage the country’s foreign exchange

Financial CrisisITALAY

Global Financial Crisis (2007-2000) Euro Area Sovereign Debt Crisis

Thailand

Global Financial Crisis (2007-2008) Political Unrest 2013

Islamic Banking ITALYNo Shari’a-compliant financial intermediary has been authorized yet THAILANDIslamic finance has not taken off yet in Thailand despite the country’s only Islamic lender, state-owned Islamic bank of Thailand or iBank, is trying its best to raise more awareness for Shariah-based banking since the company’s inception in 2003.

Financial Markets of TALY & TAHILAND

ITALY THAILANDStock Exchange Borsa Italiana Stock Exchange OF

THAILANDTOTAL Market Capitalization

$484,543 million $350,000 million

NUMBER OF BANKS 353 639

Markets & IndicesStock Exchange of Italy (Main Groups)1. Equity (MTA)2. International Equity (MTA

Internatinali)3. Equity AIM Italia4. Derivatives (Idem)5. Warrants & Certificates

(SeDex)6. Fixed Income (MOT)7. Closed-End Funds (MTF)8. ETFs (ETFplus)

Stock Exchange of Italy(Indices)I. FTSE Italia All-ShareII. FTSE MIBIII. FTSE Italia Mid CapIV. FTSE Italia Small CapV. FTSE Italia Micro CapVI. FTSE Italia STARVII.Sectorial indices

Markets & ndices

Stock Exchange of Thailand (Indices)i. SET Indexii. SET 50 Indexiii. SET 100 Indexiv. MAI Indexv. SET High Dividend 30 Index

Stock Exchange of Thailand (Main Groups)1. The Stock exchange of

Thailand (SET)2. Market for alternative

investment (MAI)3. Bond Electronic exchange

(BEX)4. Thailand Futures exchange

(TFEX)

Top Ten CompaniesITALY Rank

Company Market Value($ billion)

1 ENI 86.32 ENEL 32.23 UniCredit

Group29

4 EXOR 26.45 Generali Group 266 Intesa

Sanpaolo23.7

7 Telecom Italia 15.28 Lusottica

Group10.8

9 Atlantia 8.110 Unipol Gruppo 7

THAILANDRank Company Market Value

($ billion)1 PTT PCL 29.12 Advance Info 22.53 Siam Cement 19.14 Siam bank 18.65 Kasikorn Bank 17.16 Bangkok Bank 10.97 PTT Global 15.28 Thai Beverage 14.69 CP All 11.210 Krung Thai bank 10

Foreign Direct InvestmentITALY THAILAND

FDI (2015) $19,334 million $10,845 million

Thank You