For SME and Islamic banks, what went awry?

Due to complete management failure, two state-controlled banks, the SME Bank and the Islamic Bank of Thailand, are now dealing with bad loans in excess of 80 billion baht. This management failure is collective, whether it be the executives and directors of the two banks, the political leadership which appointed both or the Finance Ministry officials tasked with supervising the institutions. The problems at the institutions are conflicts in terms of policy direction, internal fraud and corruption and management inefficiency at the board, senior executive and staff levels. The public didn't create the troubles at these banks, but now must shoulder the cost of fixing them.