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Capability Development

In: Banking on Innovation

Author

Listed:
  • Tanai Khiaonarong

    (University of Westminster and Bank of Thailand)

  • Jonathan Liebenau

    (London School of Economics and Political Science)

Abstract

We have seen that the Asian economies studied have undergone considerable changes in payment systems and that this has affected commercial banking. In this chapter we show in detail how innovation has occurred in the Thai banking sector. In Thailand banks were placed under enormous pressure to innovate in the mid-late 1990s first by a push towards financial services liberalisation, followed closely by a major financial crisis. In this transformative period numerous innovations arose and we show how the banking community responded to them and the means by which they were disseminated and implemented. We assess survey results that illustrate the broad indicators of innovation. We apply these assessments to IT introduction and usage in the commercial banking industry, the level of automation among types of payment routines, and the major sources of commercial bank capabilities contributing to, or constraining, innovation.

Suggested Citation

  • Tanai Khiaonarong & Jonathan Liebenau, 2009. "Capability Development," Contributions to Economics, in: Banking on Innovation, chapter 6, pages 117-144, Springer.
    • Handle: RePEc:spr:conchp:978-3-7908-2333-2_6
    DOI: 10.1007/978-3-7908-2333-2_6
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