1932 - 1957 The Strength to Overcome Obstacles

The devaluation of the pound sterling in 1931 was a factor in the closure of the Thung Song branch and caused difficulties for the bank as a whole. SCB immediately saw its pound-deno- minated assets (hard currency and negotiable notes) decline in value.

With its assets now being of less worth, it was difficult to continue operating. The pound devaluation along with the weak economic conditions resulted in SCB's suffering a 3 million baht loss.

To save the bank, H.M. King Rama VII Prajadhipok, instructed the Privy Purse to lend SCB 3 million baht at no interest.

In 1939, World War II erupted in Europe. Shortly thereafter, the Thai government proclaimed its "nationalistic" policies with their focus on Thai ethnic identity. As part of this effort, the names of the country and its people were changed from "Siam" to "Thailand".

Siam Commercial Bank’s Board of Directors voted to changethe Bank’s Thai name to "Siam Commercial Bank", pronounced as "Thanakhan Thai Phanit, Limited." while the English name was modified to "Thai Commercial Bank Limited." The name it uses today and, after World War II reverted to its original English name, "Siam Commercial Bank."

   

Between the 24 June 1932 change from absolute monarchy
to constitutional monarchy and 1957, the Bank’s 50th
anniversary, Siam Commercial Bank experienced a number
of socio-economic and political crises far more severe than
those encountered during the previous quarter century.
Despite the obstacles, the Bank survived by adapting its
organization and management in a manner that reflect true
Thai ingenuity. The leadership was dramatically altered from
Western to Thai, evidence of the evolution of Thai executive
expertise. The bank expanded its branch network, developed
a just organi-zational culture, endeavored to solve some of
the country’s economic problems, introduced new banking
services, and donated to public welfare.
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