10 hours ago, Cashboy said:

Capital of a bank = Net Assets of a Bank.

If the bank provides a proper provision for bad debts; result is a hit on its Capital resulting in it not being allowed to make more loans so it wouldn't want to do that.

 

Banks Solvent ?

It would be easier to list the banks that are solvent than insolvent in the west (certainly Europe).

 

Bank Deposits are guaranteed by the governments:

You will find that Thailand is stopping its guarantee on bank deposits in August 2020.

 

You might like to recall that Cyprus Banks were going to deduct 10% of the balances in bank accounts but had to change it to 38% of balances of over 100,000 Euros because the EC told them to.

 

You clearly don't understand how banks work.  They are tightly regulated to ensure that they remain solvent under all probable circumstances.  There are strict rules regarding the treatment of non-performing loans.

 

Thailand is not stopping its guarantee on bank deposits.  It is, however, lowering the level of the guarantee to one million baht per account.  One simply spreads one's money between different banks to achieve a higher level of guarantee.

 

The Cyprus charges were nothing to do with the banks being insolvent.  This was a tax (specifically a capital levy) to refinance the economy.  It only affected uninsured bank deposits, and even then only those above €100,000.

1 hour ago, Oxx said:

 

You clearly don't understand how banks work.  They are tightly regulated to ensure that they remain solvent under all probable circumstances.  

Unfortunately we are now way out of probable circumstances...

1 hour ago, Oxx said:

 

 

Thailand is not stopping its guarantee on bank deposits.  It is, however, lowering the level of the guarantee to one million baht per account.  One simply spreads one's money between different banks to achieve a higher level of guarantee.

 

One million baht is a very small amount ($ 30,000) for a guarantee.

10 minutes ago, Brunolem said:

One million baht is a very small amount ($ 30,000) for a guarantee.

Which is why I pointed out that the guarantee is per bank.  There are 15 Thai commercial banks, so that gives you a guarantee up to 15 million baht - a bit less than half a million US dollars.

25 minutes ago, Oxx said:

Which is why I pointed out that the guarantee is per bank.  There are 15 Thai commercial banks, so that gives you a guarantee up to 15 million baht - a bit less than half a million US dollars.

In theory yes, but it is not exactly convenient to open accounts in multiple banks.

 

In big cities like Bangkok, it may be easy to find branches of all these banks, but upcountry it is much more difficult...

 

2 hours ago, Oxx said:

There are strict rules

Well riddle me this. If the constitution of a nation state can be changed post mortem, do you think these 'strict rules' can be changed too.

give me a break.