Thai bank M&A is about coups and condoms

Regional expansion: A pedestrian holding an umbrella walking past a Bangkok Bank Pcl branch in Bangkok. The bank has made US$2.7bil bid for 90% of Indonesia’s PT Bank Permata. — Bloomberg

It’s only fitting that Thailand’s second-largest bank pipped a Japanese rival to buy a lender in Indonesia. The elixir of youth is a great attraction to those who no longer have it.

Just like in Japan, the aging Thai population is propelling the economy into long-term stagnation, leaving the likes of Bangkok Bank Pcl with no choice except to seek their fortunes in younger societies bubbling over with credit demand at juicy yields. Hence, the US$2.7bil bid for 90% of Indonesia’s PT Bank Permata.