What would happen if a Bank goes down?

[bbi1]

Governments here won't bail out the banks imo. people will lose all their money in the bank. That's why I always say don't keep much money here, just what you need to cover your rent for a month or two and your food expenses.

[Lacessit]

1 minute ago, david555 said:

No repatriation option in insurance contract ?

Self-insured. What makes you think any insurance company is going to be honoring claims at present, they have departments dedicated to weaselling out of them.

[baansgr]

When my Mrs in Philippines told me a few weeks ago what was happening there, I suggested to friends withdraw money...of course if you have millions its difficult but those with less should withdraw all of it...sod the visas, always an agent can do that next time..unchartered waters at present but I've taken all mine out and just left 5k...I don't think there will be any discrimination towards foreigners, but with lockdowns and curfews, supply chains get broken...and who knows what three months from now will be like...cash is king...get your money out now.

[Susco]

1 minute ago, Lacessit said:

5 minutes ago, david555 said:

No repatriation option in insurance contract ?

Self-insured.

Make that non-insured, going by the picture of your luxurious residence you posted.

 

Can't afford a table, or not enough space?

[saengd]

1 minute ago, baansgr said:

When my Mrs in Philippines told me a few weeks ago what was happening there, I suggested to friends withdraw money...of course if you have millions its difficult but those with less should withdraw all of it...sod the visas, always an agent can do that next time..unchartered waters at present but I've taken all mine out and just left 5k...I don't think there will be any discrimination towards foreigners, but with lockdowns and curfews, supply chains get broken...and who knows what three months from now will be like...cash is king...get your money out now.

I don't think that's sound advice, perhaps far better to spread your funds around a couple or three banks instead.

[Lacessit]

37 minutes ago, saengd said:

 

 

But if you ask around to people in the forum and among people you can know who are reliable if they've ever had any bad experience such as the ones those threads portray, they all say no. For me personally I've banked here full time for almost twenty years and not once have I experienced anything remotely like fraud or even a hint of it and I keep many millions here full time, ditto anyone I know, ditto anyone I ever met, ditto anyone who posts here that has any credibility.

I keep 80% of my assets in Australia, 800K baht, self-insurance 500K baht, living expenses for 6 months. Separate banks. While I hear what you are saying, I am not prepared to put too much trust in Thai institutions. We are only visitors for a year, effectively.

[david555]

3 minutes ago, Lacessit said:

Self-insured. What makes you think any insurance company is going to be honoring claims at present, they have departments dedicated to weaselling out of them.

if believing they are all so ….. then all is lost ….and no need to take even a car insurance or other too, but understanding your point 

[Matzzon]

17 minutes ago, donnacha said:

 

No one in this thread is talking about the terms & conditions of banks. No one.

We are talking about the potential collapse of a bank if the Thai economy is damaged by the government measures against the virus.

Go back to the first post, start again and, this time, try harder to understand.

 

Is it so bad that you are not aware of that the protection and in what way the government would reimburse you in case of a collapse is in the terms and conditions of each and every bank? That means we are talking about them, right? If you do not know that, I can not for my life understand why you even comment in this thread.

[CNXBKKMAN]

The banking system failed in the UK 2008. The Bank Of England at the press of few buttons pumped billions and billions into the failed banks. The Bank of Thailand can do the same. Just like the Bank of England they can create money out of nothing. Electronic money or actually print billions of bank notes. So the big banks will never fall like dominos. 

       Some small financial company that doesn't endanger the whole system, that may be allowed to fail or have some kind of controlled demise.

       

[Lacessit]

2 minutes ago, Susco said:

Make that non-insured, going by the picture of your luxurious residence you posted.

 

Can't afford a table, or not enough space?

I'm a minimalist, and I live as well as I want to. If I feel the need for more space, I can go to my GF's house in her village. Sold my house in Australia, sick of spending 2 - 3 weeks every time I went back there catching up on maintenance. Cashed up.

But if it makes you feel superior to sneer at me, you're welcome.

[scubascuba3]

If you did get the money back it could take months, years who knows, thing to do is spread your money around and withdraw some cash in case the ATMs stop working. I have a few accounts in UK and a few in Thailand, money spread over them

[Matzzon]

4 minutes ago, donnacha said:

I wonder, could you possibly add me to your Ignore list?

No offense, but life is short and I honestly have no idea what you're on about half the time.

 

I am just saying that if a bank goes down, you will be reimbursed up to 5 million as of today, later it will go down to 1 million.

That stands in the terms and conditions of every government approved bank, and that´s why you can not state that we are not talking about them.

That must be easy enough for you to grasp, right?

 

Or are you talking about that Thailand risks to be go down as a nation? That will not happen, so then you´re on the BS path.

Edited March 26, 2020 by Matzzon

[Peterw42]

24 minutes ago, Lacessit said:

Self-insured. What makes you think any insurance company is going to be honoring claims at present, they have departments dedicated to weaselling out of them.

It would be interesting to see the number of insurance policies that have a Pandemic clause or an act of god clause. Often governments dont do people any favors by declaring pandemics or state of emergency etc, it helps the insurance companies not pay.

Edited March 26, 2020 by Peterw42

[Lacessit]

Just now, Peterw42 said:

It would be interesting to see the number of insurance policies that have a Pandemic clause or an act of god clause. Often governments dont do people any favors by declaring pandemics or state of emergency etc

My point exactly, thanks.

[donnacha]

3 minutes ago, CNXBKKMAN said:

The banking system failed in the UK 2008. The Bank Of England at the press of few buttons pumped billions and billions into the failed banks. The Bank of Thailand can do the same. Just like the Bank of England they can create money out of nothing. Electronic money or actually print billions of bank notes. So the big banks will never fall like dominos. 

       Some small financial company that doesn't endanger the whole system, that may be allowed to fail or have some kind of controlled demise.

       

The problem is that most countries have been running the printing presses non-stop since 2008.

If Thailand suffers a systemic collapse, ALL of its industries will require major money to be pumped in. Which companies get priority? If you bail them all out, that will crater the trading value of the baht, which would be a big problem for a country so reliant on imported oil.

Remember that the US, the richest country in the world, decided to not bail out one of oldest, most prestigious, and biggest investment banks, Lehman Brothers. Although, clearly, many members of this forum get extremely upset at the idea, it is not beyond the bounds of possibility for something similar to happen to one of the banks in Thailand.



 

[baansgr]

14 minutes ago, saengd said:

I don't think that's sound advice, perhaps far better to spread your funds around a couple or three banks instead.

As far as banks collapsing, yes spread it between as many as you can...but what's worrying in this situation is availability of accessing your money. Its down to the individual how serious they take this and what is happening in other parts of the world that started lock downs etc two or three weeks ago. I don't wanna have to go out, and more still I don't wanna go to an empty ATM...made my decision weeks ago.

[saengd]

11 minutes ago, CNXBKKMAN said:

The banking system failed in the UK 2008. The Bank Of England at the press of few buttons pumped billions and billions into the failed banks. The Bank of Thailand can do the same. Just like the Bank of England they can create money out of nothing. Electronic money or actually print billions of bank notes. So the big banks will never fall like dominos. 

       Some small financial company that doesn't endanger the whole system, that may be allowed to fail or have some kind of controlled demise.

       

'Printing money' is a metaphor for increasing the money supply. That happens whenever new debt is created. Banks can do that by issuing loans, governments and corporations can do that by issuing bonds, and central banks can do that by letting them do it (as given the opportunity, they will).

 

[cmsally]

Some posts have been removed. Please don't resort to flaming other posters. I realise it is an emotive subject but please try to stay on topic.

[donnacha]

21 minutes ago, Matzzon said:

That must be easy enough for you to grasp, right?

Look, if you won't add me to your Ignore list, could you at least try to be less condescending?

I understand that English is not your native language, but being so rude lacks class.
 

 

21 minutes ago, Matzzon said:

I am just saying that if a bank goes down, you will be reimbursed up to 5 million as of today, later it will go down to 1 million.

Wonderful. Explain that to the Immigration officer who you are asking to renew your visa. Explain that you can't show him your 800,000 because you are waiting for it to be reimbursed at some point next year.

 

Edited March 26, 2020 by donnacha

[glennb6]

at least the govt does not require all retirement hold accounts to be in one bank (yet) .... ssshhhhhh

[Susco]

10 minutes ago, pdtokyo said:

I don't know how many Thai banks fell into (a) post-1997, but as far as i know, post-2008 most were (a) and only Lehman Brothers fell into group (c).

You may want to have a look at this list for change of mind, as there were quite a few more that went bankrupt and in liquidation.

 

https://en.wikipedia.org/wiki/List_of_banks_acquired_or_bankrupted_during_the_Great_Recession

[Matzzon]

3 minutes ago, donnacha said:

Look, if you won't add me to your Ignore list, could you at least try to be less condescending?

I understand that English is not your native language, but being so rude lacks class.
 

 

Wonderful. Explain that to the Immigration officer who you are asking to renew your visa. Explain that you can't show him your 800,000 because you are waiting for it to be reimbursed.

 

If you want a better tone, that I guess you will have to try to understand when I explain a thing first time, not after 3. Regarding the ignore list. Why would I add you to my ignore list? You are controlling that in your account, and adding the people you do not wish to see comment from.

Yes, I actually believe they would help you with that and understand, if you have proof that the money was there when it crashed. As well as you probably will need to show some money coming in somewhere that you can live on too. Just a scenario I think might be possible, but I know you need to laugh at that and see all in black. So, just go on now and learn how to put me on your ignore list. It´s you that want to ignore my, right?

[Lacessit]

11 minutes ago, Matzzon said:

If you want a better tone, that I guess you will have to try to understand when I explain a thing first time, not after 3. Regarding the ignore list. Why would I add you to my ignore list? You are controlling that in your account, and adding the people you do not wish to see comment from.

Yes, I actually believe they would help you with that and understand, if you have proof that the money was there when it crashed. As well as you probably will need to show some money coming in somewhere that you can live on too. Just a scenario I think might be possible, but I know you need to laugh at that and see all in black. So, just go on now and learn how to put me on your ignore list. It´s you that want to ignore my, right?

I'm reminded of the aphorism " It's difficult to soar like an eagle when you work with turkeys".

[BritManToo]

5 minutes ago, pdtokyo said:

Q: If there are significant bank failures and they are not bailed out by government, where would you rather be?

 

My answer

Thailand, in my partner's home village surrounded by rice paddies, fruit trees, veggies, the occasional fish, a passable water supply and a functional family.

Agreed ..........

Food, fuel, money shortages and even the weather in the west will kill you quick.

In Thailand, you're only ever 3 months from another local rice crop.

And my misses can easily revert to gathering in the jungle.

Edited March 26, 2020 by BritManToo

[donnacha]

25 minutes ago, Matzzon said:

If you want a better tone, that I guess you will have to try to understand when I explain a thing first time, not after 3

Sadly, saying something multiple times does nothing to convert it from being wrong to being right. It's still pretty much just as dumb the third time.

 

25 minutes ago, Matzzon said:

Yes, I actually believe they would help you with that and understand, if you have proof that the money was there when it crashed.

I'm sorry, but, have you ever actually dealt with Thai bureaucracy?

Do you understand that your compassionate friends in Thai immigration will be charging the foreigners trapped in Thailand by canceled flights 20,000 baht on their eventual way out?
 

 

25 minutes ago, Matzzon said:

Just a scenario I think might be possible, but I know you need to laugh at that and see all in black.

No. In a discussion about the possible implications of an unprecedented situation, I laid out what I think could, quite possibly, happen. Most people who read this forum actually want to be aware of such possibilities. Others, like you, react emotionally to things you don't want to hear. I have met all you since I started posting back in January about the Coronavirus being a possible problem. Not one of you have had the self-awareness or humility to admit you were wrong about that one.

 

25 minutes ago, Matzzon said:

So, just go on now and learn how to put me on your ignore list. It´s you that want to ignore my, right?

As I said, I am here for the people who want to dispassionately examine the problems we all face. I am suggesting that you should put me on your ignore list because, as you have shown in multiple threads, you do not want to hear bad news.

Personally, I do not block people or use ignore lists because I think they are for idiotic snowflakes. Obviously, that is just my approach to life, but it does not preclude you using your Ignore list, you are an excellent match. Nothing I am going to write over the coming weeks about the current situation is going to be designed to help you avoid reality. So, seriously, either pop me onto your Ignore list or, at least, stop responding to my posts, because we are here for entirely different reasons.


 

Edited March 26, 2020 by donnacha

[kickstart]

Have a look at this the BBC Bangkok Bank of Commerce  went bust in the 90's,and some say triggered the 1997 crash,

Could  not see it happening today ,we had a BBc bank in our town ,as the wife reminded me our 7-11 is now there...........making more money .

 

[WhereIsMyRyeBread]

3 hours ago, saengd said:

Firstly, deposits up to 5 mill. Baht are insured by the DPA until August, thereafter it's 1 mill. Baht.

Yea but there seems to be contingencies.

 

'From August 11, 2019 Thai Baht Deposits are protected under the Deposit Protection Agency Act up to a maximum of 5 million baht per one depositor per financial institution until August 10, 2020.

 'except for Non-Resident Baht Accounts (NRBA).  '   Exactly what is an NRBA account?  (I"m asking).

 

If the intention is to cover all accounts across the board that 'except' contingency wouldn't have been stated.

It may mean only account holders with a workpermit is covered and other accounts are considered NRBA.

What about people whom may have opened a bank account and changed his/her type of visa/workpermit/no workpermit a number of times. 
Would anyone be surprised if the bank announced you need to present a valid workpermit to make a claim while at the same time people losing their jobs due to the crash and will lose the workpermits. It often comes down to who has a workpermit and who doesnt like we're seeing now with the expats allowed back in to Thailand again.

If that's the case all expat retirees and non immi O visa without a current workpermit could not make a claim for compensation with the deposits they've made as unsecure lenders to the bank aka 'a savings account' and your claim will not be prioritized.

Also foreign currency accounts e.g in USD with BKK Bank is not protected as I read.

 

It's rather time sensitive information, in my opinion its uncertain.

 

Edited March 26, 2020 by WhereIsMyRyeBread

[saengd]

9 minutes ago, donnacha said:

As I said, I am here for the people who want to dispassionately examine the problems we all face. 
 

Judging from many of your responses and from the number of your posts the mods have deleted, I think you're here to troll TBH, notwithstanding you do occasionally try to add an air of common sense and respectability to the odd posts from time to time. But to suggest you are here to dispassionately...blah blah blah is stretch way too far.

[BritManToo]

5 minutes ago, WhereIsMyRyeBread said:

'From August 11, 2019 Thai Baht Deposits are protected under the Deposit Protection Agency Act up to a maximum of 5 million baht per one depositor per financial institution until August 10, 2020.

 'except for Non-Resident Baht Accounts (NRBA).  '   Exactly what is an NRBA account?  (I"m asking).

People trusted their holiday insurance to get them home/pay delay expenses ....... how's that working out?

People trusted airlines to not cancel flights ......... how many haven't got the money from the cancelled flight back yet?

And now people want to trust the Thai government to return the money from their busted bank ..... how long is that likely to take?

 

............ and as a foreigner is your money actually even covered (NRBA)?

Edited March 26, 2020 by BritManToo

[saengd]

11 minutes ago, kickstart said:

Have a look at this the BBC Bangkok Bank of Commerce  went bust in the 90's,and some say triggered the 1997 crash,

Could  not see it happening today ,we had a BBc bank in our town ,as the wife reminded me our 7-11 is now there...........making more money .

 

You are miles off on this one, BB of C was out and out fraud, that's all it was and it had zero to do with the crash of 1997. The man in question was a Mr. Saxena, an Indian who was employed as Finance Director, he was my client for about three months whilst we put in system at the bank, he embezzled USD 88 mill. and took off to Canada.