Thai Bank Deposit protection cut to 1 million THB

[jacko45k]

4 hours ago, canthai55 said:

And when it is time to renew your visa take your mattress to Immigration

Good idea for the long wait too......

[david555]

Just now, itsari said:

The banks  have a obligation to pay on demand .

with limitations in case of bank-runs

[FritsSikkink]

"will be offered from 11 August 2020 onwards,"

[BobinBKK]

14 hours ago, fangless said:

How can moving funds offshore be described as a Goverment "goal"?

Failure appears to be the governments goal...

[Nojohndoe]

18 minutes ago, khunPer said:

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...????

I am unable to understand where I even as much as inferred 5 million Baht is "rich". But to clarify what I would consider those with "significant" offshore  wealth would be more in the range of $5 million and upwards.

Nominal deposit rates in Thailand were generally under 1% before the pandemic.

I am not denying the pandemic and resulting ramifications is having an impact of concern but with regard to the long planned implementation of this reduction in Bank Deposit protection it is less relevant than is being made out to be.

 

[billd766]

15 hours ago, fangless said:

How can moving funds offshore be described as a Government "goal"?

Perhaps as usual with this government it is an "own goal,"

[userabcd]

7 hours ago, itsari said:

The banks  have a obligation to pay on demand .

Correct.

 

But under the current myriad of regulations and rules set by govt on controlling money, the banks and bankers it is now quite easy for them to deny ones on demand access to ones deposits until whatever the issue is resolved to the satisfaction of the bank and the banker.

Edited August 6, 2021 by userabcd

[Mr Meeseeks]

I don't keep any significant amount of personal money in banks now anyway.

 

Banks are an outdated concept, allowing a third-party access to and to control your money seems now utterly bizarre to me.

 

Not your keys not your coins.

[redwood1]

47 minutes ago, Nojohndoe said:

I am unable to understand where I even as much as inferred 5 million Baht is "rich". But to clarify what I would consider those with "significant" offshore  wealth would be more in the range of $5 million and upwards.

Nominal deposit rates in Thailand were generally under 1% before the pandemic.

I am not denying the pandemic and resulting ramifications is having an impact of concern but with regard to the long planned implementation of this reduction in Bank Deposit protection it is less relevant than is being made out to be.

 

It does not matter if the decision to lower from 5 million to 1 million was made yesterday or 50 years ago.....1 million baht is a pitifully small amount of money for a bank to guarantee........(Heck you can hardly buy a cheap charlie shoebox condo for 1 million)..........What's the message here from the banks?.......We have no confidence in ourselves or what? 

[brucegoniners]

Well that's troubling.

 

I've always been right. A shoebox is the best!

[khunPer]

1 hour ago, Heng said:

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.'   ???? 

Luckily €500 are still within the one million baht guarantee; and even "rich" is relative - I fully agree, 20,000 baht can be a relative fortune - the normal expression of rich is way above 5 million baht, you might be considered a bit "loaded" at that level, and some Thai chicks might consider you as rich enough for a shorter period of time...????

[Dogmatix]

One of the issues with central bank digital currencies is whether it will be safer to hold them rather than bank deposits. So, if the Bank of Thailand issues a digital baht guaranteed by the full faith and credit of the Thai government, there will be an unlimited guarantee and banks could be drained of liquidity, especially in times of crisis. No doubt there will be ways to get interest on CBDCs through swaps and buying coin based fixed interest instruments, maybe even relending it to the governmnet. Governments will love the idea that they can trace every transaction you do too. They could probably send you a tax assessment without requiring any filing from you.  

[khunPer]

1 hour ago, Nojohndoe said:

I am unable to understand where I even as much as inferred 5 million Baht is "rich". But to clarify what I would consider those with "significant" offshore  wealth would be more in the range of $5 million and upwards.

Nominal deposit rates in Thailand were generally under 1% before the pandemic.

I am not denying the pandemic and resulting ramifications is having an impact of concern but with regard to the long planned implementation of this reduction in Bank Deposit protection it is less relevant than is being made out to be.

If money are moving out of Thailand, it's not because of a bank guarantee is lowered from 5 million baht to one million baht, and that's my point, as 5 million baht is pocket money for rich people...????

[itsari]

1 hour ago, userabcd said:

Correct.

 

But under the current myriad of regulations and rules set by govt on controlling money, the banks and bankers it is now quite easy for them to deny ones on demand access to ones deposits until whatever the issue is resolved to the satisfaction of the bank and the banker.

If that is correct and them regulations are applied I would say it is highly likely the bank would be bankrupt . I think you misunderstand the regulations to be quite honest. 

[placeholder]

2 minutes ago, david555 said:

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

 

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

Is it clear? The first clause of this sentence and the 2nd clause seem to contradict each other.

" Protection is based on a per depositor per institution basis, meaning that all of an individual’s deposit accounts across all branches of that financial institution will be aggregated into a single amount."

[david555]

41 minutes ago, placeholder said:

Is it clear? The first clause of this sentence and the 2nd clause seem to contradict each other.

" Protection is based on a per depositor per institution basis, meaning that all of an individual’s deposit accounts across all branches of that financial institution will be aggregated into a single amount."

meaning example if you have example 3 KK accounts on different branches to become counted as one account ,.

 But holding  3 different bank , example KK/SCB/ Bangkok bank are 3 independent different accounts counting for 3 separate deposit protection .

 

Foreign money accounts  excluded for deposit protection , only baht accounts 

Edited August 6, 2021 by david555

[placeholder]

4 minutes ago, david555 said:

meaning example if you have example 3 KK accounts on different branches to become counted as one account ,.

 But holding  3 different bank , example KK/SCB/ Bangkok bank are 3 independent different accounts counting for 3 separate deposit protection .

 

Foreign money accounts  excluded for deposit protection , only baht accounts 

Thanks for the explanation.

[hotandsticky]

5 hours ago, itsari said:

The banks  have a obligation to pay on demand .

Except when they can't.......................

 

 

 

That's when guarantees come into play.

 

Ahh!....so you you are more concerned about their liquidity rather than capital, adequacy. Once again, evidence to support that would be appreciated.

[JomtienRay]

When Thailand implements a policy such as this, there is a reason..  

It's part of the ongoing soap opera and guessing game..

But it WILL unfold at some stage, no matter how long it takes.. 

[Enzian]

I have my Non-O extension money in an FCD (Foreign Currency Deposit) account, and I've always known it is not insured. The upside at this moment is that the dollar is not losing money as fast as the baht. Also, Krungsri is 70% owned by Japanese, who I trust more than Thai. My real complaint is that this government was supposed to do away with corruption, but simply increased it by effectively disallowing the affidavit letters: now many friends are even more motivated to pay an "agent" to bribe the IO a few days before renewal to pretend that they have had the funds, while my money remains at risk in many ways. I don't want my friends to be forced to leave, but I would like more equity. All things considered, the reasonable thing seems to be to remove myself and the $30K (even though it is not much in a way) from the country, and go back to long tourist visas. I'm in the US now, don't miss the heat.

[Sheryl]

Does anyone know if this limit is per account or per person? I have 2 accounts in the same bank, one for my 800k for visa purposes and the other for living expenses. Neither exceeds 1 million but combined they do. Am I covered for 1 mill in each account or only 1 mill for the 2 combined?

[couchpotato]

24 minutes ago, Sheryl said:

Does anyone know if this limit is per account or per person? I have 2 accounts in the same bank, one for my 800k for visa purposes and the other for living expenses. Neither exceeds 1 million but combined they do. Am I covered for 1 mill in each account or only 1 mill for the 2 combined?

2 combined (or any number of accounts in One bank).

 

eg: one account in BKK Bank is covered up to 1m.

2 accounts in Kbank (combined is covered up to 1m)

3 accounts  in SCB (combined covered up to 1m).

 

Hope that helps.

 

 

[couchpotato]

20 minutes ago, couchpotato said:

2 combined (or any number of accounts in One bank).

 

eg: one account in BKK Bank is covered up to 1m.

2 accounts in Kbank (combined is covered up to 1m)

3 accounts  in SCB (combined covered up to 1m).

 

Hope that helps.

 

 

Sheryl these 2 websites will be very helpful to you.

 

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

 

Bank deposit protection cut to THB1 million from August 11 (nationthailand.com)

 

 

Edited August 6, 2021 by couchpotato

[placeholder]

2 hours ago, Sheryl said:

Does anyone know if this limit is per account or per person? I have 2 accounts in the same bank, one for my 800k for visa purposes and the other for living expenses. Neither exceeds 1 million but combined they do. Am I covered for 1 mill in each account or only 1 mill for the 2 combined?

David555 kindly took pity on me and my reading disability to explain a piece of text from the government. No matter how many accounts you have at the bank, the limit is 1 million baht for all of them combined. So if you have more than 1 million baht in the same bank, you're only covered up to 1 million baht. But you can establish an account at another bank and have that account also covered for 1 million baht. So that would give you a total coverage of 2 million baht. And if you open an account at yet another bank etc..etc...etc...

[LivingNThailand]

I have read all the comments and I don’t see anything about joint accounts.  I have 800,000 in on account for immigration and a little over a million in a joint account with my wife.  This is basically for emergencies. Needed cash immediately for whatever.  All with the same bank.  I messaged the branch manager yesterday and asked and the reply was…don’t worry. Huh?  So how does this apply to joint accounts?   Do we both get a million coverage each?  Last year we wired some money back to the US in anticipation of something like this and wondering if we need to move more.  Thanks for your help in advance.  

[Venom]

Why? They forgot to mention what is the purpose! ????

 

TIT

Edited August 7, 2021 by Venom

[Neeranam]

On 8/6/2021 at 4:52 AM, 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 ?

No, gold is not a good investment, I'm in bitcoin, much easier to store and has increased by an average of 100% a year. 

[Neeranam]

I've currently got a large sum in one bank, waiting to buy a house. 

How high is the risk that someone in the bank could steal it? 

I've had issues in the bank before where a member of staff was stead long interest. 

Should I open other accounts in other banks and put 1 million in each, or is this paranoia? 

[eddysacc]

I doubt that if a big bank fails, that anyone would see that 1 mio THB within the next couple of years.

And if so the money would be transfered back it is highly likely that the value of it already decreased considerably.

 

Thailand is not the USA and cannot just create loads of new THB. It would be just wiped out by the financial markets.

 

The Foreign Exchange Reserves in Thailand are about 248000 Mio. USD as of now. What is not that much.

 

 

[JAS21]

I’ll ask ‘the fountain of all knowledge’ this morning, shall we do a little bit of moving around.

 

No no she said banks don’t fail.

 

So why should I worry at my age, we have a house, we have a car, I have a pension and really the money in Thailand will be hers anyway. And I try and keep a 50-50 split UK/Thailand.

 

And of course coming down to 1 million baht has been planned for a long long time.

 

I hope that she is right, as when the masks come off, if she is wrong her Golf will be substantially cut down lol