Through both internal and external factors, the changes have brought former financiers into the banking industry, while bankers have shifted to the financial sector.

Last year, we saw marketers turning into bank presidents, while bankers became politicians.

Kosit Panpiemras, former executive chairman of Bangkok Bank - long regarded as an economic guru - was appointed deputy prime minister and industrial minister. His mission for the interim government, with a term set for only one year, is likely to involve two key issues: building an understanding of the sufficiency economy - the philosophy behind the interim administration's economic policy management - and productivity improvement.

With a interest in rural development, when working at the country's largest commercial bank Kosit was responsible for the unique achievement of supporting small and medium-sized enterprises and modern agricultural businesses through both financial facilities and advice.

He set up the Advanced Agricultural Project at the bank with the objective to promote progressive agriculturists. Other banks, without his example, would not have developed similar agriculture-related businesses.

He will return to Bangkok Bank after his responsibility in the interim government ends, as he promised bank chairman Chatri Sophonpanich he would do.

After Kosit left, Piti Sithi-Amnuai, then the bank's vice executive chairman, took his position on a temporary basis. At the same time, the bank adjusted some executive positions.

Bangkok Bank  appointed Singh Tangtatswas as managing director to reduce the workload of its president, Chartsiri Sophonpanich. With his accounting background and authority equal to the president, Singh helps the bank with accounting and Basel II, the new international banking standard.

Kannikar Chalitaporn will become Siam Commercial Bank's new president, replacing Khunying Jada Wattanasiritham, who retire from the post this month. Though she lacks banking experience, the board hopes Kannikar will use her marketing expertise to lead the bank amid intensifying competition in consumer banking.

Marketers becoming bank presidents is likely to become a new phenomenon for the industry. Kannikar's long experience in marketing at Unilever Thai Trading is a key reason that she was chosen to take the position amid the current marketing-oriented trend. She was appointed as the bank's senior executive vice president in 2003, overseeing the retail banking group following her appointment as a board member at Siam Commercial Bank. Kannikar's performance so far has been quite outstanding.

The bank's non-interest income rose from Bt8.42 billion in 2004 to Bt10.38 billion in 2005 and Bt8.14 billion in the first three quarters of last year. The bank's credit-card numbers have expanded from 300,000 three years ago to 1.5 million at the end of 2006. Siam Commercial Bank ranks No 1 in terms of card base.

The change in the top management position at Siam City Bank (SCIB) was caused by conflict. The resignation of the former president, Arun Chirachavala, which took effective on September 1, resulted from disagreements between Arun and the bank's board over business strategy.

The acquisition of Ratchathani Leasing caused significant conflict between them. The board believed the bank should have influence over the management of the leasing firm, but the number of shares that Arun had acquired was lower than the board's requirement. The board urged Arun to increase the bank's shareholding in the company.

Finally, SCIB's stake in Ratchathani was increased to 40.33 per cent, up from 22.82 per cent.

The bank's board was also apparently dissatisfied with second-quarter earnings, in which several items showed growth rates lower than the industry level. SCIB, Thailand's seventh-largest bank, posted a net profit of Bt743.29 million in the second quarter, 53.25 per cent down from the Bt1.59 billion achieved in the corresponding period of 2005.

These were only some of the reasons behind Arun's resignation.

Chulakorn Singhakowin, former president of the now-defunct Bank of Asia, was expected to serve the bank in the top executive position, having achieved the highest score from the selection committee.

But the labour union protested against Chulakorn, preferring that the new president be selected from current SCIB executives. The central bank gave its support to Chulakorn, while the bank's board would like to select Lersuk Chuladesa, currently first senior vice president, as the new president.

The latest move is that the board has scrapped the result of the presidential selection process, as well as the selection committee itself. The board said it would find a new president on its own.

Somruedi Banchongduang

The Nation