Bank depositor protection cut to Bt5 million

[justin case]

and why would they do this

 

if not to prepare for the banks to "legally" STEAL your money above 1 million in a simulated crash

[dabhand]

24 minutes ago, geoffbezoz said:

But that report you have just quoted is erroneous as it states "On August 11th 2016 it will be reduced to only 1 million baht" so clearly it was inaccurate as it will only be reduced to 1 million from Aug 2020 as per the most recent announcement by the Thai government department.

 

Do you also want someone to look out all the more recent articles that indicated a delay to the implementation of the limit reductions? A number of articles have provided this information.

The article clearly noted that a reduction was in the works. but, as with a lot of similar decisions, the initial plans get delayed, so those depositors who would be affected by such a decrease in cover should be well aware of the intent. 

 

 

 

[geoffbezoz]

1 minute ago, dabhand said:

Do you also want someone to look out all the more recent articles that indicated a delay to the implementation of the limit reductions? A number of articles have provided this information.

The article clearly noted that a reduction was in the works. but, as with a lot of similar decisions, the initial plans get delayed, so those depositors who would be affected by such a decrease in cover should be well aware of the intent. 

 

 

 

If you state something to oppose another persons statement then you should be prepared to support your comment with facts.  In this case it appears they can not be supported, erroneous news items hardly give credence to any argument,  and your response adds no factual evidence either, rather condoning the unfactual statement referenced !! So when we make such meaningless pie in the sky statements they give readers as much confidence as me saying I surely shall win the lottery.

[473geo]

18 minutes ago, NightSky said:

..a way to slow hot money inflows and influence the Thai baht?

If as stated on this thread a planned gradual realignment, then this could appear to be a classic case of appearing to be in control and manage the current situation, when the decision to implement was actually made years ago.

[Ctkong]

2 hours ago, Pedrogaz said:

Need to open multiple bank accounts. I have several accounts, including, some with more than 5 million. When it drops to 1 million next August, pretty much all of my money will be exposed. On top of all the immigration stuff here is yet another reason to leave these sunny shores.

Why ? Other countries have a better bank protection scheme? 

[TallGuyJohninBKK]

9 hours ago, rooster59 said:

The limited insurance is expected to check the risky behaviour of investors who search for high rate of returns without taking into account potential risks.

 

What kind of B.S. propaganda is this?

 

The government deposit insurance ONLY covers deposits in government-licensed banks in Thailand that typically pay little (a couple percent) to nothing in the way of interest on most of their accounts. The accounts in those banks are supposed to be basically without risk.

 

The only potential risks for those kinds of deposits OUGHT to be trusting any amount of money to the Thai government regulated and insured banking system, and the Thai staff who work for the various commercial banks and have some history of defrauding both Thai and other depositors.

[topt]

33 minutes ago, geoffbezoz said:

If you state something to oppose another persons statement then you should be prepared to support your comment with facts.  In this case it appears they can not be supported, erroneous news items hardly give credence to any argument,  and your response adds no factual evidence either, rather condoning the unfactual statement referenced !! So when we make such meaningless pie in the sky statements they give readers as much confidence as me saying I surely shall win the lottery.

You have had at least 3 people (I think) state that it is old news in this thread. I will add my voice to theirs.

Unfortunately with the changes to Thai visa trying to search for specific posts/threads from some years ago can be problematical.

If you do not want to believe "up to you"   

[geoffbezoz]

3 minutes ago, topt said:

You have had at least 3 people (I think) state that it is old news in this thread. I will add my voice to theirs.

Unfortunately with the changes to Thai visa trying to search for specific posts/threads from some years ago can be problematical.

If you do not want to believe "up to you"   

Sorry but I would rather believe what I read, not figments of someones imagination but as you say, up to you.

[Krataiboy]

1 hour ago, geoffbezoz said:

True but gold still seems a safer haven then many junk currencies though, the GBP being a prime example

Not sure Mr Soros would agree with you. Wouldn't be at all surprised if, after pouring zillions into the Remain campaign, he starts snapping up  pounds like there's no tomorrow. (Which, of course, there won't be, if you believe anti-Brexiteers and climate change fanatics!).

Edited August 11, 2019 by Krataiboy

[Pib]

Lot of weblinks out there talking the Thailand Deposit Protection Program which went into effect 2008....a program that has adjusted it's scheduled coverage step-downs a few times over the years...adjustment usually for the better.  And every time there is a schedule coverage step-down we see a flurry of news articles. The Thailand Deposit Protection Agency (DPA) use to have excellent English language descriptions/Q&A about the program until the revamped their website about a year ago and now the DPA website is weak on English.  

 

Below are a couple of weblinks and some partial quotes from the weblinks.  For those of you with Bangkok Bank see the their weblink which includes a good amount of Q&As.   Best to have your money spread across several Thai banks to get more coverage.  And for you folks with Foreign Currency Deposit accounts you have no coverage under the program....the coverage is for Thai baht accounts.

 

http://www.thaiwebsites.com/deposits-insurance.asp

Partial Quote from above weblink..

Quote

 

About Thai Banking Deposits Insurance

Apparently after the Asian economic crisis of 1997, bank deposits at Thai banks were fully insured.

A Deposit Protection Act was passed in early 2008 and implemented towards the end of that year. From then on only limited government insurance for deposits at Thai (private) banks is in effect.

Now the original proposal was as follows and initially was still quite generous :
A blanket guarantee of deposits in the starting year, Bt100 million per person per bank in the second year, Bt50 million in the third, Bt20 million in the fourth and Bt1 million in the fifth, which was supposed to start somewhere in the middle of 2012. 
However, the original proposals got amended a few years later. We will forego these changes, but below are the latest data as decided by the Thai goverment in April 2016 :

Up to 10 August 2016 deposits were protected up to 25 million baht.
Thereafter, protection will be in place for 15 million baht in deposits between Aug 11, 2016 and Aug 10, 2018; for 10 million between Aug 11, 2018 and Aug 10, 2019; for 5 million between Aug 11, 2019 and Aug 10, 2020; and for 1 million by Aug 11, 2020..... 

 

 

Bangkok Bank 

https://www.bangkokbank.com/en/Personal/Tips-and-Insights/Save-and-Invest/Practical-advice-on-deposit-protection

[roquefort]

10 hours ago, geoffbezoz said:

So looking like they are, due to looming major economic downturn, preparing for future potential insolvency of a major banking institution and preparing to "steal" from their current investors.   

No doubt about it. Like every other bankrupt government around the world (remember what happenened in Cyprus, that was just a test run).

[mahjongguy]

Many interpret this action as a sign of government confidence in the Thai banking system.

The BOT wants to use some of the money set aside to cover the insurance to instead repay debt still outstanding from the 1997 crisis.

[Pib]

DPA Leaflet 

http://www.dpa.or.th/en/file/download/phaen-phab-phasa-xangkvs

 

[Tayaout]

No private key not your bitcoin. 

[Pib]

 

DPA Frequently Asked Questions

http://www.dpa.or.th/en/file/download/khumux-tham-txb-phasa-xangkvs

DPA_booklet-dpa-faq-en1216-4781997b0c.pdf

 

[Pib]

DPA Video

 

 

[roquefort]

55 minutes ago, Pib said:

DPA Video

 

 

That really reassures me (not).

[leeneeds]

3 hours ago, Airalee said:

I looked into that at Bangkok Bank (Emquartier branch) and was told that in order to get (rent) a safe deposit box I needed to have a minimum account balance of ฿10,000,000.  

I think there are better deals than that around, I have not looked into it for 10 years so I may be out of touch, having put most of my liquid assets into bricks and mortar 

[Dumbastheycome]

Many countries  have long abandoned  Government  guarantees  on  national banking entities. Not even for the equivalent for 1 million Thai Baht.

The incremental reduction in Thailand should be recognized as a very fair indication to people  about where they need think about placing reserves of finance if they have them. For the  vast majority I would suspect that is and will continue to be the pocket.

For those  who have too much for the pocket need consider splitting their loot or considering investing in a lumpy  mattress or a considered  productive investment outside of the  Banking Industry.

Consider the concept of  "cash" as a transitional  form of exchange for goods  and/or services. Beyond reserves  to satisfy certain criteria  why  give Banks the opportunity  to  pay marginal interest on deposits and  extract  administration costs on that?

Use it or lose  it. Applies  to many  things in life !

 

[timendres]

7 hours ago, Airalee said:

I looked into that at Bangkok Bank (Emquartier branch) and was told that in order to get (rent) a safe deposit box I needed to have a minimum account balance of ฿10,000,000.  

I use a private safe deposit box.

 

   http://www.safedepositboxbangkok.com/

 

Another alternative:

 

   https://cblockers.com/

 

[Airalee]

4 hours ago, leeneeds said:

I think there are better deals than that around, I have not looked into it for 10 years so I may be out of touch, having put most of my liquid assets into bricks and mortar 

I’ll look around, but it was hard enough finding a bank to even let me open an account for the 800k “retirement visa” deposit.

 

40 minutes ago, timendres said:

I use a private safe deposit box.

 

   http://www.safedepositboxbangkok.com/

 

Another alternative:

 

   https://cblockers.com/

 

Thanks!

[sungod]

13 hours ago, Pedrogaz said:

Need to open multiple bank accounts. I have several accounts, including, some with more than 5 million. When it drops to 1 million next August, pretty much all of my money will be exposed. On top of all the immigration stuff here is yet another reason to leave these sunny shores.

When you off?

[macahoom]

 

The Deposit Protection Agency's coverage only applies to private banks like Bangkok Bank, SCB, CIMB, Kasikorn etc.

 

It does not apply to state owned banks like:

• Bank of Agriculture and Agricultural Co-operatives

• Government Savings Bank

• Government Housing Bank

• Islam Bank of Thailand

 

Deposits in these state owned banks are 100% guaranteed, regardless of the amount of funds on deposit.

 

Any comments on that?

[Pib]

2 hours ago, macahoom said:

 

The Deposit Protection Agency's coverage only applies to private banks like Bangkok Bank, SCB, CIMB, Kasikorn etc.

 

It does not apply to state owned banks like:

• Bank of Agriculture and Agricultural Co-operatives

• Government Savings Bank

• Government Housing Bank

• Islam Bank of Thailand

 

Deposits in these state owned banks are 100% guaranteed, regardless of the amount of funds on deposit.

 

Any comments on that?

These "government" banks are supposedly covered by the Finance Ministry which is a major/majority shares holder.  Guess you just gotta trust the Finance Ministry.  Of course even those commercial banks covered under the DPA fall back on govt trust.

[RocketDog]

On 8/11/2019 at 7:38 AM, leeneeds said:

Buy gold bricks and install in a secure bank vault, 

no acquiring possible,  other than rental rates and insurance is roughly 50%

of rental cost, as an option.

Sober advice.

I am leery of keeping gold in bank vaults if it's at all feasible to keep it somewhere more local and secure that one can always access. Hole in the ground, safe in your house, etc?

 

There are books available on hiding things in plain site in many standard household fixtures. I personally know a wiley Japanese woman who paints her gold bricks brown and uses them as door stops in her house. ????

 

Banks have a way of closing down just when you need access the most. If a bank is between you and your physical assets such as metals, you have to ask yourself if it  serves a needed or helpful function for the risk involved. In this case I suggest that it may not.

 

Another thought is to split it between two or more bank boxes. If you insure box contents then you must reveal them.. That makes me nervous too.

 

I also advocate gold jewelry over bricks or coins for storage in Thailand. Much more easily divided and easier to liquidate and/or transport across borders.

 

I have not a shred of trust in banks, but have an account as needs must.

 

Thanks

[blackcab]

@geoffbezoz here is a link to an article published in 2008 by the forum founder, george. Essentially, what happened in the intervening years is that the time frame for deposit guarantees was extended. Higher coverage limits were kept for a longer period of time.