banks aren't guaranteeing deposits

[silicastorm]

I have seen comments in several posts in TV about “banks aren't guaranteeing deposits in excess of 1 million baht”

 

can someone explain or provide more information regarding this statement?

 

thanks for clarification 

[ukrules]

I believe this has been delayed.

 

It's deposit insurance. If they go bankrupt then you get a maximum of 1 million Baht back via the insurance scheme.

 

If you have a balance of 10 million then you get 1 million, it's as simple as that.

 

Why have they been reducing this coverage in stages over the years is the real question here......?

[EricTh]

18 minutes ago, ukrules said:

I believe this has been delayed.

 

It's deposit insurance. If they go bankrupt then you get a maximum of 1 million Baht back via the insurance scheme.

 

If you have a balance of 10 million then you get 1 million, it's as simple as that.

 

Why have they been reducing this coverage in stages over the years is the real question here......?

 

It's not really a mystery because in the past, many foreigners transfer tons of money into Thailand driving up the value of the Baht.

 

If the Baht goes up, then economy of Thailand will go down....

 

[Pib]

 

http://www.dpa.or.th/en/articles/view/protection-limit

[scammed]

55 minutes ago, EricTh said:

If the Baht goes up, then economy of Thailand will go down....

is the same statement valid for great britain ????

[silicastorm]

1 hour ago, ukrules said:

Why have they been reducing this coverage in stages over the years is the real question here......?

YES!

 

Why would they reduce the protection coverage for foreign investors in Thai banks...? 

 

 

[baansgr]

9 minutes ago, silicastorm said:

YES!

 

Why would they reduce the protection coverage for foreign investors in Thai banks...? 

 

 

It's Thai citizens also....

[VBF]

Presumably, it's 1 mil per institution ie 1 mil with SCB + 1 mil with Kasikorn etc.? If so possible to mitigate some risk that way.

 

Sorry for Thai people who have no choice, but really any foreigner who keeps lots of dosh in what is still, essentially a 3rd world banking system isn't very smart. Having seen the pitiful security, both personal and electronic practised in Thailand I don't think I'd keep any more than essential even if i did live there.

 

Especially seeing how easy it is today to transfer from a better-protected account Eg UK is  £85K per institution - approx 3,655,000 Baht. I presume the interest rates in Thailand are as pathetically low as other countries - I haven't bothered to look as it doesn't affect me.

[superatoz]

thats why i rarely transfer big amts unless im buying something of high value 

, dont trust their banking systems

[Ron jeremy]

Anyone keeping large sums of money in Thailand is nothing short of an idiot.

[david555]

This was the original climbdown from 15 million baht deposit guarantee to 1 mill., but the last step seems to be postponed …(?)

[Mike Teavee]

4 hours ago, silicastorm said:

I have seen comments in several posts in TV about “banks aren't guaranteeing deposits in excess of 1 million baht”

 

can someone explain or provide more information regarding this statement?

 

thanks for clarification 

It could be the fact that FCD (Foreign Currency Deposits) are not covered by the Deposit Guarantee (only Thai Baht accounts are covered up to a maximum value of £ 5Million THB until August 2021 when it is scheduled to be reduced to 1 Million). 

 

 

[eppic]

US FDIC guarantee is currently US$250k per customer/ institution or $500K for a joint account.

 

Singapore insures only up to SG$75k (US$55k, THB 1.7million) per customer per institution.

 

So Thailand currently at THB5 million or about US$160k, which is actually quite generous.  Honestly, given the relative wealth of the countries it's no surprise that Thailand would reduce the number, and in fact 1 million (US$32k) still seems pretty reasonable in comparison.

Edited October 17, 2020 by eppic

[gentlemanjackdarby]

7 hours ago, ukrules said:

I believe this has been delayed.

 

It's deposit insurance. If they go bankrupt then you get a maximum of 1 million Baht back via the insurance scheme.

 

If you have a balance of 10 million then you get 1 million, it's as simple as that.

 

Why have they been reducing this coverage in stages over the years is the real question here......?

Not much of a question, really

 

I went a few rounds with one of the broke <deleted> e-begging Youtubers over this a couple of years ago:

 

It all boils down to the strength of the country's banking system - strong banking systems, such as the U.S., in conjunctions with their central banks, will do what is necessary to ensure that their depositors and other market participants don't lose faith in the markets and that they continue to participate, with most knowing that their assets are ultimately safe if they don't make bone-headed plays

 

If that means setting the amount of FDIC deposit insurance above the usual USD 250K (about THB 7.9 million) to no limit, as was done in the wake of the 2008 instability, then it will be done; as well, if it means making a market in securities when other primary market makers can't or won't (such as was done earlier this year in U.S. Treasuries market when the Wu-Flu Panic grabbed too many people by the short-and-curlies), it will be done

 

The end result is that (much) sooner, as in the case of the Wu-Flu Panic, in which their were no financial system structural distortions to eliminate, or later, as in the case of the 2008 instability in which structural distortions had to be eliminated, the markets right themselves, some folks make money and some folks lose money, and life goes on

[ChakaKhan]

5 hours ago, VBF said:

Presumably, it's 1 mil per institution ie 1 mil with SCB + 1 mil with Kasikorn etc.? If so possible to mitigate some risk that way.

 

Sorry for Thai people who have no choice, but really any foreigner who keeps lots of dosh in what is still, essentially a 3rd world banking system isn't very smart. Having seen the pitiful security, both personal and electronic practised in Thailand I don't think I'd keep any more than essential even if i did live there.

 

Especially seeing how easy it is today to transfer from a better-protected account Eg UK is  £85K per institution - approx 3,655,000 Baht. I presume the interest rates in Thailand are as pathetically low as other countries - I haven't bothered to look as it doesn't affect me.

But my dosh keeps the Mrs... Posh! ????

[gentlemanjackdarby]

5 hours ago, VBF said:

Presumably, it's 1 mil per institution ie 1 mil with SCB + 1 mil with Kasikorn etc.? If so possible to mitigate some risk that way.

 

Sorry for Thai people who have no choice, but really any foreigner who keeps lots of dosh in what is still, essentially a 3rd world banking system isn't very smart. Having seen the pitiful security, both personal and electronic practised in Thailand I don't think I'd keep any more than essential even if i did live there.

 

Especially seeing how easy it is today to transfer from a better-protected account Eg UK is  £85K per institution - approx 3,655,000 Baht. I presume the interest rates in Thailand are as pathetically low as other countries - I haven't bothered to look as it doesn't affect me.

I doubt that most Thais care since I read somewhere awhile back that the average balance for all Thai banks accounts was something like the equivalent of about USD 3,900

 

Of course, being an average amount rather than a median amount, it's likely that a relatively few accounts have a boatload and most have what could charitably be called just a pittance. A median would have been much more helpful and interesting to me, but I suppose it's a number that the well-heeled would rather not have floating about.

 

I suppose that very wealthy Thais have a fat rainy day fund squirreled away outside Thailand, given the ease with which money can be moved around in an instant these days

[gentlemanjackdarby]

1 hour ago, eppic said:

US FDIC guarantee is currently US$250k per customer/ institution or $500K for a joint account.

 

Singapore insures only up to SG$75k (US$55k, THB 1.7million) per customer per institution.

 

So Thailand currently at THB5 million or about US$160k, which is actually quite generous.  Honestly, given the relative wealth of the countries it's no surprise that Thailand would reduce the number, and in fact 1 million (US$32k) still seems pretty reasonable in comparison.

Just to add a bit and to draw a sharper distinction between the U.S. and the rest:

 

In the U.S., a husband and wife could have up to USD 1 million in an institution insured by the FDIC - USD 500K for their joint account and USD 250K for each of their individual accounts. It could be even more if the husband and wife each have joint account(s) with their kid(s) and, of course, they could have accounts at other institutions, etc.

[HashBrownHarry]

6 hours ago, superatoz said:

thats why i rarely transfer big amts unless im buying something of high value 

, dont trust their banking systems

Based on what?

[tonray]

10 minutes ago, HashBrownHarry said:

Based on what?

Perhaps based upon trusting banks in western societies who have nearly destroyed the world several times in the past two decades...ha ha ha

[jacko45k]

7 hours ago, Ron jeremy said:

Anyone keeping large sums of money in Thailand is nothing short of an idiot.

Jeez, I had better repatriate it back to the UK then and keep the 35% profit.

Edited October 17, 2020 by jacko45k

[ubonjoe]

Wrong forum. Moved to the Business and Banking forum.

[Brunolem]

3 hours ago, gentlemanjackdarby said:

 

In the U.S., a husband and wife could have up to USD 1 million in an institution insured by the FDIC - 

The only problem is that the FDIC doesn't have the money to cover its promises...by a long shot...

 

Otherwise, deposits in Thai banks are insured up to 5 million baht until August 2021...we'll see after that.

 

Some banks, like the Bangkok Bank for example, also have their own insurance...up to one million baht in this case.

 

It is a simple reflex that leads foreigners to believe that "their" banks are safer, just because "their" country is safer.

 

Non biased economic studies show that the reality is different, and that the banks in the worst financial situation are not in Thailand, but in Europe.

 

As for the governments coming to the rescue, European countries are far more broke than Thailand, with their national debts around 100% of GDP, against less than 60% for Thailand.

 

Anyway it is the central banks, and not the governments, who supervise and come to the rescue of the banks, if necessary.

[wombat]

put your money into Australian banks and its guaranteed by the government or as old mate says don't put money in the bank, buy the bank. (shares)

[AlfHuy]

Nothing is guaranteed.

 

You really think that you get your 1,000.000 out

1000 people queuing to get their 1,000.000. That's 1billion baht.

50,000 people panicking, that is 5trillion baht.

Customers of other banks will start to panic and there won't be any money left.

 

You will be happy to withdraw a few thousand baht at a time. That's it.

 

They can guarantee what they want. There is simply no money when the rush begins.

Edited October 18, 2020 by AlfHuy

[Seeall]

49 minutes ago, wombat said:

put your money into Australian banks and its guaranteed by the government or as old mate says don't put money in the bank, buy the bank. (shares)

Everything can go down...

[sidgy]

36 minutes ago, AlfHuy said:

1000 people queuing to get their 1,000.000. That's 1billion baht.

50,000 people panicking, that is 5trillion baht.

would 50,000 x 1,000,000 not be 50 billion bht ?

[AlfHuy]

10 minutes ago, sidgy said:

would 50,000 x 1,000,000 not be 50 billion bht ?

5,000.000.000.0

 

You are right.

Too many zeros ????

[topt]

17 hours ago, silicastorm said:

I have seen comments in several posts in TV about “banks aren't guaranteeing deposits in excess of 1 million baht”

The ones I have seen have all been repudiated with the facts as mentioned earlier in this thread. This raises the question of why the OPs title does not have a ? after it and makes it appear as a statement of fact.....

 

Just to be clear there isn't, and never has been in recent times, protection for Foreign Currency Accounts - whether you are Thai or a foreigner.

[pennine]

13 hours ago, Ron jeremy said:

Anyone keeping large sums of money in Thailand is nothing short of an idiot.

There must be millions of idiots in Thailand then.

[natway09]

Please name me one bank in the UK with better credentials than the Big 5 here ?

Some homework may surprise you