Jump to content

Change to deposit protection at Thai banks will have little impact


Recommended Posts

Posted

9mp,.jpg

Picture: Daily News

 

Kasikorn bank's research center said that the government's change in policy regarding account protection will have little effect.

 

The government have changed the amount they will cover in the event of a bank's collapse from 5 million  to one million effective from today. 

 

The move has been years in the making and is not a result of the pandemic or other factors related to Covid-19.

 

Investors and account holders have been aware of its introduction for the best part of a decade.

 

Fundamentals in the banking sector remain strong said Kasikorn in a report picked up by Daily News

 

In fact far from savings going down as a result they are expected to go up in 2021 by between 3.5 to 4.5%.

 

This is inline with earlier predictions of a 3.6% rise made in June. 

 

The research center noted that the majority of accounts do not have one million baht in them and these have seen the greatest fall in savings in the pandemic.

 

Accounts over one million baht continue to rise and will be the greatest driver of increases in savings in Thai banks. 

 

asean_now_BB.jpg
  • Confused 1
  • Haha 2
Posted
4 minutes ago, brucegoniners said:

Oh really? Sounds like wishful thinking from Thai banks, especially since a Thai bank wrote this, lol

 

Of course most Thais don't have a million baht in their account. We do.

 

My wife and I were talking yesterday about opening a second account at another bank to spread our money around and not be over the one million baht threshold. So whether they know it or not, there will be changes.

 

However I doubt it will affect any one bank, since all banks will be affected, losing and gaining from it rather equally.

 

If any banks will benefit it's likely to be some of the lesser known banks who will get deposits they wouldn't otherwise have. Just my humble opinion.

Some of the smaller banks pay a slightly higher interest rate. However some are reluctant to open an account for a foreigner-especially one without a work permit.  One of the smaller banks in a shopping mall refused to open an account for me event though I have PR.. "No sir"..."We need to see a work permit and a visa"

Posted
4 minutes ago, brucegoniners said:

Oh really? Sounds like wishful thinking from Thai banks, especially since a Thai bank wrote this, lol

 

Of course most Thais don't have a million baht in their account. We do.

 

My wife and I were talking yesterday about opening a second account at another bank to spread our money around and not be over the one million baht threshold. So whether they know it or not, there will be changes.

 

However I doubt it will affect any one bank, since all banks will be affected, losing and gaining from it rather equally.

 

If any banks will benefit it's likely to be some of the lesser known banks who will get deposits they wouldn't otherwise have. Just my humble opinion.

I guess many people will move to the Government Savings Bank for instance. If I can open an account there as foreigner I will be one of them. I wait for the branches in the mall to open again to clarify everything. Another bank might be Krung Thai.

  • Like 1
Posted (edited)
50 minutes ago, jacko45k said:

It was announced some time ago scheduled for this month.

Even in totality i saw the planning in steps almost 5 years ago from very high to present timing, with even the last 1 million baht limit postponed with one year . And now activated .

 

I wish i did not deleted that schedule layout , it would prove it was a long time planning ....!

Edited by david555
  • Like 1
Posted
26 minutes ago, jacko45k said:

It is worse than that, you stated individual accounts in the case of the USA. In Thailand, it will be per individual account holder... ie my 2 accounts with the bank only have a total protection limit of 1M THB.

What about 2 accounts in two different bank? Can that be more than 1M THB?

Posted
55 minutes ago, DLock said:

I have not kept up with this, but what is the logic behind doing this?

 

It certainly doesn't inspire confidence or want me to hold too much money in the Thai banking system.

Get more then one bank account

Posted
23 minutes ago, darrenr said:

BS ! We are going to have a global crash in the order of 65-80%,the banks know this, before anyone calls me a quak , do you honestly think that given the recent pandemic, insane QE /money printing that there will not be consequences? Inflation will be out of control and the central banks will start to tighten to try and control inflation, Interest rates will rise and crush the economy. Don’t have money in Thai  banks that you can’t afford to lose ! Think Asia Crisis !

We are the most overvalued market since 1929 (Great Depression), do your research if you don’t believe me !

So what's the best way to park our money?

 

Posted
2 minutes ago, EricTh said:

What about 2 accounts in two different bank? Can that be more than 1M THB?

Yes, each bank offers 1 Mil Cover, (but not on FCDs I believe).

Posted
2 minutes ago, jacko45k said:

Yes, each bank offers 1 Mil Cover, (but not on FCDs I believe).

Correct

  • Like 1
  • Thanks 1
Posted
Just now, topt said:

 

Here is a page from 2011 where it says from 2012 it was going from 50m to 1m in 2012......

http://thailawforum.com/thai-deposit-insurance-law.html

 

I can't find the more recent updates (many on Thaivisa) showing the progression after that.

Oh Thank you ???? ,as all seems now to panic it is because Covid ....NO ! it was a very long time planning.

 

 

Thank you once more to help me out as i deleted that nice graphic picture who showed it very simple way 

Posted

I know everyone is up to date but just to say I was in krungski bank today and if you hv 2 etc different account..as mentioned collectively only 1 million is covered.. anybody hv any idea how good back up is on these thai banks I'm not savvy on this stuff 

Posted
10 minutes ago, jacko45k said:

Yes, each bank offers 1 Mil Cover, (but not on FCDs I believe).

No foreign money accounts are covered for deposit protection ....

 

 

  • Like 2
  • Confused 1
Posted
3 minutes ago, Iforbach said:

I know everyone is up to date but just to say I was in krungski bank today and if you hv 2 etc different account..as mentioned collectively only 1 million is covered.. anybody hv any idea how good back up is on these thai banks I'm not savvy on this stuff 

read the pdf that David posted earlier in the thread or go here and have a mosey around -

https://www.dpa.or.th/en/site/index and somewhere they explain how it all works. 

For solvency levels on individual Thai banks you need to look at other sources.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.



  • Topics

  • Latest posts...

    1. 2

      Bangkok car crash: Honda Civic bursts into flames, passengers escape

    2. 64
    3. 47

      British Tourist Attacked in Pattaya: Nose Broken, Eye Bruised; Authorities on the Hunt

    4. 211

      Why are many people so partisan?

    5. 211

      Why are many people so partisan?

    6. 239

      Trump's 'huge lie' shows 'he’s taking everyone for an idiot': analysis

    7. 10

      Pervert gets rocks off masturbating in Pattaya

  • Popular in The Pub


×
×
  • Create New...