BANGKOK -- Thailand's Kasikorn Bank has signed an agreement with 19 Chinese partner banks to create the largest Sino-Thai factoring service network, the bank announced here on Monday.

Under this cooperation, Kasikorn Bank and the Chinese banks agree to purchase trade receivables from each other, as well as offer the service of debt collection from each others' trade receivables. Meanwhile, business loans will be offered to reduce international trade risks and assure importers and exporters of smooth and flexible business operations.

It is expected that the overall factoring transactions under the agreement will reach 29 billion baht ($957 million).

The growth of economic cooperation in Asia, particularly the ASEAN Economic Community inception in 2015 and ASEAN Plus Three, a pact of regional cooperation between the 10 ASEAN members and China, South Korea and Japan, will help stabilize Asian economic conditions, said Banthoon Lamsam, CEO of Kasikorn Bank.

China is Thailand's top export market and second-largest trading partner, he noted.

Foreseeing the significance of fast-growing bilateral trade and investment, the Kasikorn Bank decided to develop international transactions and settlements for a more complete and diverse service, in a bid to enhance international trade solutions for importers and exporters, the CEO added.

The 19 Chinese banks include China Minsheng Banking, Shanghai Pudong Development Bank, China Merchants Bank, which are members of Factors Chain International.