31.   A source in the banking industry said several foreign banks are interested in purchasing Thai banks.

32.   According to a source from a commercial bank, foreign investors are currently hesitant to invest in Thai banks since they are uncertain about the quality of their assets.

33.   After the central bank takes over SCIB, it will look for new foreign financial investors to acquire the Thai bank.

34.   Akapol said expatriate Thais would be able to buy the bonds through foreign branches of Thai banks.

35.   Although Thai banks prefer financial investors who are willing to invest in banks without management participation, they may have to choose strategic investors instead.

36.   An expert said that in rejecting foreign investors, Thai banks would be stymied.

37.   Although Thai banks recorded a drop in profits or losses, this was because they have to set aside reserves for non-performing loans.

38.   And Thai banks may not be able to fight to retain quality and strength without foreign assistance.

39.   Because of the stricter provisioning requirements, Thai banks and finance companies are undergoing recapitalisation.

40.   Banking analysts said, however, that Thai banks will find it difficult to meet the requirement.