Thai Bank Deposit protection cut to 1 million THB

[Andycoops]

I can understand the commercial banks failing but what about the banks owned by the government itself?

[vukovar77]

Nothing new. Postponed many times already.

[Walker88]

18 minutes ago, vukovar77 said:

Nothing new. Postponed many times already.

Probably just a coincidence that something postponed for years is just now being introduced....at a time when banks have debt moratoriums and do not have to recognize NPLs, when banks can book imputed interest as income (even though it isn't being paid), and when the economy is being wracked by Covid......just a coincidence.

[Mises]

1 hour ago, Walker88 said:

Your argument is right, of course, but proper due diligence on the part of consumers seems to require a transparency level that doesn't exist. In fact, it PURPOSELY doesn't exist, so as 'not to scare depositors'.

 

Right now there are all sorts of debt moratoriums and creative accounting that blocks everyone from getting a grip on the financial position of any bank. What is the real NPL level, when the very definition of NPL has changed due to Covid 'allowances'? I believe banks can also recognize imputed interest as income, even though the debt moratorium allows for non-payment (but accrual). So a bank's P&L is effectively meaningless, as is their stated level of NPLs.

 

Thailand is not alone in allowing smoke and mirrors in the banking system. In the US and EU, derivatives tend to be OBS, so who knows how big a bank's exposure is? Then there's those SIVs, (Special Investment Vehicles) which are also carried off balance sheet. Remember that when Synthetic CDO Squareds with a Credit Default Swap Kicker were so opaque that BOTH sides holding opposing positions (such as in a CDS) could book a 'profit'. That didn't end well in 2009.

 

[bbko]

54 minutes ago, Andycoops said:

I can understand the commercial banks failing but what about the banks owned by the government itself?

https://www.dpa.or.th/en/articles/view/list-of-insured-financial-institutions

 

Financial Institutions

1. BANGKOK BANK PUBLIC COMPANY LTD.
2. KRUNG THAI BANK PUBLIC COMPANY LTD.
3. BANK OF AYUDHYA PUBLIC COMPANY LTD.
4. KASIKORNBANK PUBLIC COMPANY LTD.
5. TMB THANACHART BANK PUBLIC COMPANY LTD.
6. CIMB THAI BANK PUBLIC COMPANY LTD.
7. THE SIAM COMMERCIAL BANK PUBLIC COMPANY LTD.
8. STANDARD CHARTERED BANK (THAI) PUBLIC COMPANY LTD. 
9. UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LTD.
10. TISCO BANK PUBLIC COMPANY LTD.
11. KIATNAKIN PHATRA BANK PUBLIC COMPANY LTD.
12. LAND AND HOUSES BANK PUBLIC COMPANY LTD.
13. INDUSTRIAL AND COMMERCIAL BANK OF CHINA (THAI) PUBLIC COMPANY LTD.
14. THE THAI CREDIT RETAIL BANK PUBLIC COMPANY LTD.
15. MEGA INTERNATIONAL COMMERCIAL BANK PUBLIC COMPANY LTD.
16. BANK OF CHINA (THAI) PUBLIC COMPANY LTD.
17. ANZ BANK (THAI) PUBLIC COMPANY LTD. 
18. SUMITOMO MITSUI TRUST BANK (THAI) PUBLIC COMPANY LTD.
19. JPMORGAN CHASE BANK, N.A.
20. OVERSEA-CHINESE BANKING CORP., LTD.
21. CITIBANK, N.A.
22. RHB BANK BERHAD
23. BANK OF AMERICA, N.A.
24. THE HONGKONG AND SHANGHAI BANKING CORP., LTD.
25. DEUTSCHE BANK AG
26. MIZUHO BANK, LTD.
27. BNP PARIBAS
28. SUMITOMO MITSUI BANKING CORPORATION
29. INDIAN OVERSEAS BANK

Finance Companies

1. SRISAWAD FINANCE PUBLIC COMPANY LTD
2. ADVANCE FINANCE PUBLIC COMPANY LTD. 

Credit Foncier Companies

1. SBEY CREDIT FONCIER CO., LTD.
2. WORLD CREDIT FONCIER CO., LTD.
3. CAPITAL LINK CREDIT FONCIER CO., LTD.

[DPKANKAN]

4 hours ago, ezzra said:

To me it means few things, *Don't bring your money to us, we don't want it, *We're not good enough to guard it and be responsible for your money, and last but not least, *Saving with banks is a bad idea, keep your money under your mattress it's safer there...

To my thinking it is the flip side. Because national debt is heading up to GDP levels, the potential tipping point, their thinking could be people may reduce their borrowings thus reducing the risk of the next Thai financial collapse. Who knows????????????????????

[mikebell]

9 hours ago, daveAustin said:

Governments don’t like savers; they want you to spend and buy property. 

But not houses.

[Pattaya Spotter]

Where are the balloon chasers gonna keep their funds now?

[Walker88]

40 minutes ago, Mises said:

 

NPL Non-Performing Loan

P&L Profit and Loss

CDS Credit Default Swap

CDO Collateralized Debt Obligation

OBS Off Balance Sheet

SIV Special Investment Vehicle

EU European Union

US United States of America

 

Hope that helps.

[Isaan sailor]

Just make sure you maintain active accounts in two or more Thai banks.  That way you can transfer money physically or electronically to rebalance funds when needed.

[peleid]

What would happen in the worst case scenario, your bank where you have your 800,000 baht for immigration purposes goes belly up before you have time to do your next extension of stay. How would immigration look on it?

[hotandsticky]

Just now, peleid said:

What would happen in the worst case scenario, your bank where you have your 800,000 baht for immigration purposes goes belly up before you have time to do your next extension of stay. How would immigration look on it?

 

 

Seriously,........ you REALLY wondered that ?

 

 

You need to get out more.

[NoshowJones]

5 hours ago, lodstewart said:

the insurance companies are smelling some big risk I suspect, That can only mean one or more Banks are looking 'wobbly'

get it out and buy physical gold and hide it away somewhere safe,  anyone agree ?

Just keep the biggest bulk of your money in your home country bank and keep enough money here in Thailand for your living expenses. If you want to apply for retirement extensions, use an agent and forget this 800.000Baht in your bank nonsense, don't be a member of the "scared of your own shadow" brigade.

 

[itsari]

9 minutes ago, hotandsticky said:

 

 

Seriously,........ you REALLY wondered that ?

 

 

You need to get out more.

It can happen . At the present time the outlook is not good for Thai banks 

[userabcd]

4 hours ago, redwood1 said:

Sir you must be joking.......When it was planned does not change anything..

 

1 million baht is a tiny tiny amount of money when it comes to running a business, life savings, investing, retirement etc....Its VERY OMINOUS...

 

What saver could know everything about a banks operation? No one can know everything.....

 

Even 5 million is way to little but 1 million is just laughable....

 

Well I guess that's it for investing in Thailand for many.....

Do you have first hand knowledge or proof of this ominous event?

 

If you are so worried about this

ominous event then recommend you analyse your financial risk and the institutions who hold your savings and distribute your savings into different banks. You will be covered.

 

You do realise your savings in the bank do not belong to you but that you have made an unsecured loan to the bank.

Edited August 6, 2021 by userabcd

[Road Warrior]

OW DEAR =  don't want farang money in thailand, for get their idea of want well heeled farangs here !!!

[Orinoco]

27 minutes ago, peleid said:

What would happen in the worst case scenario, your bank where you have your 800,000 baht for immigration purposes goes belly up before you have time to do your next extension of stay. How would immigration look on it?

Sorley Mr No Hab extension for you,

You pay fine then go back home country. 

 

Edited August 6, 2021 by Orinoco

[userabcd]

39 minutes ago, Road Warrior said:

OW DEAR =  don't want farang money in thailand, for get their idea of want well heeled farangs here !!!

Why the xenophobic comment? Thai Govt regulation is for Thai financial institutions and money, they have not specifically targeted foreigners money.

Edited August 6, 2021 by userabcd

[userabcd]

43 minutes ago, peleid said:

What would happen in the worst case scenario, your bank where you have your 800,000 baht for immigration purposes goes belly up before you have time to do your next extension of stay. How would immigration look on it?

 

Possible to suggest you deposit another 800000 baht with another financial institution while you wait until your 800000 is reimbursed or use some of the other existing rules and methods to support a non immigrant temporary  stay in Thailand.

Edited August 6, 2021 by userabcd

[userabcd]

2 hours ago, vandeventer said:

You would think with baht going down the protection would be going up?

Why?

[hotandsticky]

58 minutes ago, itsari said:

It can happen . At the present time the outlook is not good for Thai banks 

Perhaps you can provide links/statistics to evidence this claim - and perhaps highlight any capital deficiencies in any specific Thai bank may be suffering. Maybe also evidence the Bank of Thailand shortcomings that make you think that they could not honour a 1m Baht deposit guarantee scheme.

 

 

I'll wait.

[Nojohndoe]

Would my thinking be so wrong  to consider that given the Thai Baht has fallen quickly and is likely to continue to decline that for those very wealthy who probably have significant offshore holdings would be inclined to now buy back into Baht to utilize property purchases at a time of a depressed local market combined with the advantage of the exchange rates?

For the vast numbers who possess nothing but debt the insurance providers to Banks will dictate more stringent criteria for further loans to minimize risk.

The Government protection level has been progressively reduced over many years and although this latest final decrease has been deferred more than once it is unlikely to impact on the majority even now.

 

 

[khunPer]

14 hours ago, fangless said:

This is not sudden.  It was announced sometime ago!

Sometime = about 10 years or more...????

[khunPer]

15 hours ago, Heng said:

That's a confidence booster.   Will move the appropriate amounts offshore, which I assume is their "goal" here.

In a way, I'm happy that I'm not rich, then I don't have that kind of problems to deal with...????

[david555]

Here a clear explanation ....and not too long to read  what go happen in case ....and also foreigners  specified ,

and by my understanding the foreign accounts are excluded .... by-by money in such case 

 

https://www.dpa.or.th/en/articles/view/who-is-protected

Edited August 6, 2021 by david555

[khunPer]

14 minutes ago, Nojohndoe said:

Would my thinking be so wrong  to consider that given the Thai Baht has fallen quickly and is likely to continue to decline that for those very wealthy who probably have significant offshore holdings would be inclined to now buy back into Baht to utilize property purchases at a time of a depressed local market combined with the advantage of the exchange rates?

For the vast numbers who possess nothing but debt the insurance providers to Banks will dictate more stringent criteria for further loans to minimize risk.

The Government protection level has been progressively reduced over many years and although this latest final decrease has been deferred more than once it is unlikely to impact on the majority even now.

The guarantee is lowered from 5 million baht to one millin, is 5 million baht that what you consider as "rich"..?????

 

The for many of us farangs - and presumable also the tourist industry, if there were any tourists - little weaker baht is rather caused by the national dept has increased from 42 percent of GNP to just over 50 percent of GNP due to Covid-loans, and that the interest rate was lowered from 1.5 percent to 0.5 percent, and in general the financial situation due to lockdowns; i.e. the Thai stock market is also declining at the moment. Last time we had nice "cheap" bahts was under the former more democratic elected government, where the national dept was about 48 percent of GNP...????

[Heng]

13 minutes ago, khunPer said:

In a way, I'm happy that I'm not rich, then I don't have that kind of problems to deal with...????

It's all relative.   Surely you want to preserve your nest egg/reserves/etc. whatever its size.   So even if you only have 500 Euros or dollars in some checking account somewhere,.... you have an 'offshore stash.'   ???? 

[itsari]

59 minutes ago, hotandsticky said:

Perhaps you can provide links/statistics to evidence this claim - and perhaps highlight any capital deficiencies in any specific Thai bank may be suffering. Maybe also evidence the Bank of Thailand shortcomings that make you think that they could not honour a 1m Baht deposit guarantee scheme.

 

 

I'll wait.

Time will provide the evidence needed . No bank will advertise there difficulties . They will hide the truth as long as possible

I have not mentioned the Bank of Thailand has shortcomings to honour the reduced bank guarantee from five million to one million .

[Peterphuket]

2 hours ago, hotandsticky said:

 

 

Seriously,........ you REALLY wondered that ?

 

 

You need to get out more.

They are officials/clercs, aren't they who react differently.

[itsari]

2 hours ago, userabcd said:

Do you have first hand knowledge or proof of this ominous event?

 

If you are so worried about this

ominous event then recommend you analyse your financial risk and the institutions who hold your savings and distribute your savings into different banks. You will be covered.

 

You do realise your savings in the bank do not belong to you but that you have made an unsecured loan to the bank.

The banks  have a obligation to pay on demand .