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Something strange happening to Thai banks deposit protection starting soon

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Check this silly stuff out. I thought they wanted us to put money in Thai banks.

Is something big about to happen that we don't know about? Are there too many defunct loans not being paid back? Are some banks getting ready to go belly up?

https://www.nationthailand.com/in-focus/40004190

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  • scubascuba3
    scubascuba3

    This has been planned for quite a while, still it's bad timing, think I'll keep my balances below 1m

  • ArcticFox
    ArcticFox

    They signaled that move quite awhile ago.  For all the talk about rich well-heeled foreigners obtaining visas and work permits by dumping huge amount of cash into Thai banks - well moves by the Tha

  • Mickeymaus
    Mickeymaus

    They were never protected.

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I wonder what applies to Foreign Currency Accounts.

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This has been planned for quite a while, still it's bad timing, think I'll keep my balances below 1m

  • Author

KannikaP... It says, "DPA offers protection to both Thai and foreign individuals and juristic persons who hold accounts in the Thai currency in any of 35 financial institutions"  So, it doesn't seem like it would affect other currencies, but that would be worth sussing out for sure.

Edited by Galong
add name

5 minutes ago, scubascuba3 said:

This has been planned for quite a while, still it's bad timing, think I'll keep my balances below 1m

I really don't have a choice. 800k plus a 20k buffer is all I can do at the moment. Real estate rich, cash meh.

  • Author
6 minutes ago, scubascuba3 said:

This has been planned for quite a while, still it's bad timing, think I'll keep my balances below 1m

It has happened before too.  Yeah, alas, everything seems to be 'bad timing' these days.

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2 minutes ago, HappyExpat57 said:

I really don't have a choice. 800k plus a 20k buffer is all I can do at the moment. Real estate rich, cash meh.

I guess it makes sense to spread out money over several banks.

I've got four bank accounts, so that's easy for me.  I don't know how challenging that might be for others.  Good luck either way, sir. 

BTW, here is a list of DPA banks https://www.dpa.or.th/en/articles/view/list-of-insured-financial-institutions

Moved to the business and banking forum.

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They signaled that move quite awhile ago. 

For all the talk about rich well-heeled foreigners obtaining visas and work permits by dumping huge amount of cash into Thai banks - well moves by the Thai central bank to leave depositors holding most of the risks will be a factor in making sure that "scheme" never goes anywhere.  They are clearly signaling that there is excess risk withing the banking system.  I gotta agree as the system is floating in over-extended debt held on Thai bank's balance sheets.  When it goes pear shaped they will stiff the depositors. 

I'd like to see figures indicating movements in banks' non-performing loans over the last seven years....

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1 hour ago, KannikaP said:

I wonder what applies to Foreign Currency Accounts.

They were never protected.

There was news about the change awhile back.. .. 

Maybe not direct related , but beware Thailand should sign in to the OECD "club" before end August 2021 or become on a certain list ...

& look at this  part in pdf 

JURISDICTIONS UNDERTAKING FIRST EXCHANGES BY 2023 (3) (2022 first tests...) , 2023 money reporting starting 

 

Common Reporting Standard: Potential Impacts on Financial Institutions in Thailand and Residents (globalcompliancenews.com)

 

OECD AEOI-Commitments 2023 Thailand start.pdf

Edited by david555

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You could have a protection scheme of just 200,000 or 20 million but you know damn its not worth the paper its written on when push comes to shove

 

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7 hours ago, scubascuba3 said:

This has been planned for quite a while, still it's bad timing, think I'll keep my balances below 1m

I wish I had a single balance above 1m.

 

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7 hours ago, HappyExpat57 said:

I really don't have a choice. 800k plus a 20k buffer is all I can do at the moment. Real estate rich, cash meh.

Crazy Thailand. I own a BKK condo at 5mTHB at lowest but still need to keep 800+k in the bank for visa extension. Duh!

 

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3 hours ago, soi3eddie said:

Crazy Thailand. I own a BKK condo at 5mTHB at lowest but still need to keep 800+k in the bank for visa extension. Duh!

 

Wasn't the 800k originally meant to be available for expenses and medical, can't quickly sell a 5m baht condo

5 hours ago, Chivas said:

You could have a protection scheme of just 200,000 or 20 million but you know damn its not worth the paper its written on when push comes to shove

 

probably ok for 1 or 2 banks folding but if many get into crisis then I can see the protection stalling

12 hours ago, Mickeymaus said:

I wonder what applies to Foreign Currency Accounts.

Last sentence in the article says,

“Protection will only be provided to accounts in the baht currency. In case a financial institution gets its licence revoked, the account holder will get their money back within the sum covered within 30 days,”

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3 hours ago, scubascuba3 said:

Wasn't the 800k originally meant to be available for expenses and medical, can't quickly sell a 5m baht condo

Can't spend the 800K (or at least 50% of it) or you 'invalidate' your extension. It's a ridiculous set of rules to try and prevent scammers sharing the same 800K when in all reality the scamming going on is from agents and officers of the Immigration department.

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9 hours ago, david555 said:

Maybe not direct related , but beware Thailand should sign in to the OECD "club" before end August 2021 or become on a certain list ...

& look at this  part in pdf 

JURISDICTIONS UNDERTAKING FIRST EXCHANGES BY 2023 (3) (2022 first tests...) , 2023 money reporting starting 

 

Common Reporting Standard: Potential Impacts on Financial Institutions in Thailand and Residents (globalcompliancenews.com)

 

OECD AEOI-Commitments 2023 Thailand start.pdf 730.69 kB · 0 downloads

 

As mentioned, on previous threads about CRS, Thailand still has to enable internal legislation to actually undertake this and I haven't seen any notice of that happening - have you?

Also it is going to affect the Thai's with big money as much, if not more than, expats unless avoiding paying their home country tax man.

Be interested to see if anybody has any more recent information. 

8 minutes ago, tonray said:

Can't spend the 800K (or at least 50% of it) or you 'invalidate' your extension. It's a ridiculous set of rules to try and prevent scammers sharing the same 800K when in all reality the scamming going on is from agents and officers of the Immigration department.

Don't you just have to have the 800k in two months prior to applying for your extension?

 

Similar to the family extension with 400k?

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Just now, 2009 said:

Don't you just have to have the 800k in two months prior to applying for your extension?

 

Similar to the family extension with 400k?

Must also maintain 800K for 3 months after your extension and additionally can never drop below 400K at any time. It's a useless account and causes many problems for people that really do need to access the money in an emergency.

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9 hours ago, Chivas said:

You could have a protection scheme of just 200,000 or 20 million but you know damn its not worth the paper its written on when push comes to shove

 

Yes when the big crash comes these "protections" mean nothing, not even in the West.

12 minutes ago, Henryford said:

Yes when the big crash comes these "protections" mean nothing, not even in the West.

The FDIC protection in the US has never failed. 

 

In Thailand, the great baht crisis of 1997 is why almost all average Thais keep their savings in gold under their beds instead of in banks. Banks are used to facillitate transactions but the savings (if any) are kept in gold. I'm sitting right next to the GF's stash....I should weigh it someday...ha ha ha ha

41 minutes ago, 2009 said:

Don't you just have to have the 800k in two months prior to applying for your extension?

 

Similar to the family extension with 400k?

NO not the same.

2 minutes ago, brianthainess said:

NO not the same.

So, you need to show a whole year's statement, rather than just  a few months before extension?

3 minutes ago, 2009 said:

So, you need to show a whole year's statement, rather than just  a few months before extension?

Correct

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Just now, 2009 said:

So, you need to show a whole year's statement, rather than just  a few months before extension?

In theory on your first 90day report you must show still 800,000 baht in the bank and on your next renewal show that it did not drop below 400,000 for the whole year. Married extension once granted you can spend the lot.

1 minute ago, brianthainess said:

In theory on your first 90day report you must show still 800,000 baht in the bank and on your next renewal show that it did not drop below 400,000 for the whole year. Married extension once granted you can spend the lot.

I guess the assumption is you can sponge off the wife and Mia Noi(s) if you're married ?

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