Change to deposit protection at Thai banks will have little impact

[TallGuyJohninBKK]

11 minutes ago, shortstop2 said:

Yup, Because of the rule I looked around and found the SCB Easy Account which pays 1.5% interest.

 

https://www.scb.co.th/en/personal-banking/deposits/savings-account/easy-saving-account.html

 

Note this account does not have a passbook and probably can't be used for Immigration purposes.

Doesn't appear to have an ATM card either, but I can't quite tell from reading their info.

 

[userabcd]

53 minutes ago, TallGuyJohninBKK said:

 

From the last time around. Hopefully in the future, they'll do better:

 

"First hand experience in 1997/1998: had money here frozen. Government passed the amount owed to their government bank KTB.

 

KTB had my funds on their books though I had never opened an account with that bank. I could NOT remove any money for about 3 years. Yes it was frozen, but I did get it ALL back, even had small amount of interest. The worries of it all was disheartening."

 

https://aseannow.com/topic/702233-thai-bankers-association-tells-depositors-not-to-rush-to-withdraw-money-rice-pledging/?do=findComment&comment=7398829

 

This time frame is a major factor and one the DPA should clarify, the time it will take them to payout the 1 million baht or less to depositors.

 

It seems ridicilous that they could take 3 years to return up to one million baht or less to depositors with all the computerised information the banks have on hand these days.

[shortstop2]

8 minutes ago, TallGuyJohninBKK said:

Doesn't appear to have an ATM card either, but I can't quite tell from reading their info.

 

I "think" you can get an ATM card but not sure.   But I transfer money in less than than a minute to Krungsri and use my Krungsri card.

[EricTh]

2 hours ago, userabcd said:

Park 1 million baht in different banks.

Park all savings in GSB.

Buy gold bars but hope the price does not go down and factor in all the fees and charges to sell gold back to the gold shop.

What is GSB? Why is it better than normal banks?

[TallGuyJohninBKK]

16 minutes ago, userabcd said:

This time frame is a major factor and one the DPA should clarify, the time it will take them to payout the 1 million baht or less to depositors.

 

It seems ridicilous that they could take 3 years to return up to one million baht or less to depositors with all the computerised information the banks have on hand these days.

 

That was under the pre-DPA rules years back, when things were a mess and they were pretty much flying by the seat of their pants.

 

Under the DPA, there is a shorter timeframe for delivery of the restored funds... But exactly how that timeframe would be applied has some variables/flexibility built into it, specificallly, the requirement that the government has to first revoke the operating license of the bank in question before the payment clock starts ticking.

 

 

https://www.dpa.or.th/en/file/download/deposit-protection-agency-act-no2-be2560-2

 

 

 

 

 

[TallGuyJohninBKK]

7 minutes ago, EricTh said:

What is GSB? Why is it better than normal banks?

GSB is not covered by the DPA. From the DPA FAQs doc:

 

 

I "think" the operating notion is, that government owned and run banks are not really at risk of failing financially, because they're backed by the national government.

 

Here's the list of banks that are covered by the DPA.

 

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

 

Edited August 11, 2021 by TallGuyJohninBKK

[Griffo63]

1 hour ago, TallGuyJohninBKK said:

 

 

https://www.dpa.or.th/en/file/download/khumux-tham-txb-phasa-xangkvs

 

 

Thanks 

[Etaoin Shrdlu]

45 minutes ago, userabcd said:

This time frame is a major factor and one the DPA should clarify, the time it will take them to payout the 1 million baht or less to depositors.

 

It seems ridicilous that they could take 3 years to return up to one million baht or less to depositors with all the computerised information the banks have on hand these days.

Back in the 1990s finance companies offered very good interest rates on promissory notes and many individuals and companies purchased them, not being fully aware of the risk involved.

 

My recollection is that when 56 of the approximately 90 finance companies operating at that time were closed by the Thai government in December of 1997, those who had invested in those promissory notes had them transferred to Krungthai Bank and converted to bank deposits. They were not able to withdraw the money immediately.

 

Although many of the closed finance companies had ties to commercial banks, none of these funds were originally in the form of bank deposits.

 

These were not insured deposits and yet I believe the Thai government eventually made good on them. I'm not sure the same delay in recovering insured funds from a defaulting bank would apply. 

 

Edited August 11, 2021 by Etaoin Shrdlu

[Sir Dude]

The problem is that you just can't believe what these people are saying. Whether it's due to self-interests or being leaned on from certain entities for the good of an agenda... the fact remains that there is a huge truth and believability deficit. It would not be unreasonable to think that the above is just the financial version of TAT's deluded announcements. How do we know the difference when we are all (Thais and foreigners) so suspect of such officialdom? Sentiment and confidence are key, that's true... but many many people aren't stupid and will see it for what it really is. 

Thailand is a cool country in so many ways, but I'll never truly come to grips with the generic shameless lies that are intertwined into the fabric and corners of everything for the short-term benefit of whoever is espousing them.

[TallGuyJohninBKK]

15 minutes ago, Sir Dude said:

 

Thailand is a cool country in so many ways, but I'll never truly come to grips with the generic shameless lies that are intertwined into the fabric and corners of everything for the short-term benefit of whoever is espousing them.

 

My personal trust factor for these guys and the governments here, born out of years of experience living here, is not especially high....

 

That's why I at least like having a national LAW, being the DPA, that specifically spells out foreign nationals' rights to have their deposits within the applicable limit restored from a covered bank that's failed.

 

Once venturing outside of that legal framework, the national government could, AFAIK, do pretty much whatever it wanted to do with the non-DPA covered financial institutions, especially in regards to foreign national depositors. That scenario makes me more than a bit uncomfortable.

 

[garyk]

1 hour ago, TallGuyJohninBKK said:

BTW, for those with an interest in this, you also have to be careful to ensure that your Thai bank accounts are NOT classified as "non-resident baht accounts."  Because, those are NOT covered by the DPA act and its protections.

 

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

 

“Non-Resident Baht Accounts” as defined in the Exchange Control Act B.E. 2485 (1942) are not protected.

 

Remark:

A “Non-Resident Baht Account” is a special type of deposit account denominated in Thai baht that is used solely for transactions as specified in the Exchange Control Act. A “Non-Resident” means:

...
4)  Natural persons not of Thai nationalities and not having alien identity or residence permits."

 

 

Wow, it that is the case, there will be thousands of expats scrambling to get 800K in another bank pronto before their yearly extension.

[TallGuyJohninBKK]

5 minutes ago, garyk said:

Wow, it that is the case, there will be thousands of expats scrambling to get 800K in another bank pronto before their yearly extension.

I THINK those so-called non-resident accounts are the type that a Thai bank typically might open for someone staying here short term as a tourist and things like that.

 

Accounts that expats open once on annual visas and extensions SHOULD get coded by the bank as RESIDENT accounts, but it's always good to doublecheck with one's bank to make sure.

 

I THINK one way of telling off the bat is that non-resident accounts typically won't pay any interest, whereas I believe an interest paying account is going to be a resident account.

 

[garyk]

6 hours ago, EricTh said:

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

 

If you have to have it in a Thai bank for your yearly extension,  just keep the minimum you need. The rest keep in your home country. That is what I would do. If you are living their full time the money in the bank for the extension is pretty much a write off anyway.

Keep enough in your home country for another round of extensions if Thailand is home.

And hope the goal posts don't change. 

Edited August 11, 2021 by garyk

[couchpotato]

I really dont understand all this worry about Thai banks. 

If you go back many many years, through all the coups, financial crisis, NPL's etc etc, not one Thai bank has ever failed, or depositors have lost their money (unlike banks in some other countries).

I have personally banked with 3 Thai banks for over 40 years, never lost a penny and always been treated well and always felt safe.

So I think this is just a huge over-reaction to something that has been in the works for more than 10 years. I will say though that it's probably not the best time to lower the limit, but then again when is the best time.

 

[anchadian]

Foreigners in Thailand have nearly ฿600 billion in the bank as inequality and poverty rise alarmingly

 

Figures published this week show a strong financial system but a deeply dysfunctional economy plagued by growing inequality. Thailand’s economic problems date back to well before this pandemic which has only served to expose them. The World Bank and other international financial institutions have long urged the government to introduce more radical plans to tackle inequality at all levels to afford younger generations a level playing field of opportunity which certainly does not exist now.

 

More:

https://www.thaiexaminer.com/thai-news-foreigners/2021/08/11/foreigners-have-nearly-600-billion-baht-banked/

[unblocktheplanet]

6 hours ago, ianguygil said:

If you are really concerned then you can invest in Thai government debt which is backed by the full faith and credit of the people who issue the Baht.

You must be joking, right? Remember the Reichsmark, Zimbabwe dollar & lots of others. This devaluation of security is a signal.

[Nickelbeer]

6 hours ago, david555 said:

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

 

 

I rest my case.  The BEST reason not to have a Thai bank account.

[redwood1]

5 hours ago, mrfill said:

If it is going to have little, or no effect, why are they doing it?

 

 

I see this comment has been ignored by just about everyone....Not even so much as a like......

 

The most important question here......

 

Why?  Why are they lowering the customers protection to a measly pathetic 1 million?

 

Why?

 

Very very good question....

 

No doubt they got their eye on 500,000 and then 250,000.......Don't laugh.....It was 25,000,000 million not so long ago.....

Edited August 11, 2021 by redwood1

[topt]

 

1 minute ago, redwood1 said:

I see this comment has been ignored by just about everyone....Not even so much as a like......

 

The most important question here......

 

Why?  Why are they lowering the customers protection to a measly pathetic 1 million....

 

Why?

 

Very very good question....

 

No doubt they got their eye on 500,000 next......

It has not been ignored. It has been mentioned multiple times from the first page of this thread that this has been in the works for a long time - originally timetabled back in 2011........

With news articles almost every year since and more than one thread  on here in the last couple of months. 

 

[topt]

28 minutes ago, Nickelbeer said:

I rest my case.  The BEST reason not to have a Thai bank account.

You are aware that the comment was about foreign currency accounts and nothing to do with Thai baht accounts held by foreigners?

[bbabythai]

7 hours 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 

1. register an account at bitkub or any crypto exchange

2. link your thai bank account and transfer your money

3. buy bitcoin or ethereum

4. Move it to a newly purchased Trezor hardware wallet and dont give anyone your private keys

5. Your money is 100% safe as long as you keep your private keys to your trezor safe and separate from the actual device. 

[topt]

1 hour ago, TallGuyJohninBKK said:

I THINK those so-called non-resident accounts are the type that a Thai bank typically might open for someone staying here short term as a tourist and things like that.

Tourists are just another foreigner. Definition is covered in the DPA site just under where it says foreigners are covered -

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

Quote

A “Non-Resident Baht Account” is a special type of deposit account denominated in Thai baht that is used solely for transactions as specified in the Exchange Control Act. A “Non-Resident” means:

1)  Corporations, institutions, funds, financial institutions or juristic persons located outside Thailand.
2)  Entities of foreign governments located outside Thailand.
3)  Branches and agents of domestic juristic persons located outside Thailand
4)  Natural persons not of Thai nationalities and not having alien identity or residence permits.

And before someone chimes in with that us "foreigners" are included in no 4 no we are not.

[redwood1]

7 minutes ago, topt said:

 

It has not been ignored. It has been mentioned multiple times from the first page of this thread that this has been in the works for a long time - originally timetabled back in 2011........

With news articles almost every year since and more than one thread  on here in the last couple of months. 

 

That it was planned back in 2011 does not answer the "Why" question.....

[david555]

30 minutes ago, Nickelbeer said:

I rest my case.  The BEST reason not to have a Thai bank account.

they just cover their own Thai baht accounts , as the foreigner wish to keep it in his country exchange rate ....(hence they loose the exchange rate profit ...)

 

Can we or you (either ) have a Thai baht account in our country's ? (i really don't now...?) 

[userabcd]

2 hours ago, TallGuyJohninBKK said:

 

That was under the pre-DPA rules years back, when things were a mess and they were pretty much flying by the seat of their pants.

 

Under the DPA, there is a shorter timeframe for delivery of the restored funds... But exactly how that timeframe would be applied has some variables/flexibility built into it, specificallly, the requirement that the government has to first revoke the operating license of the bank in question before the payment clock starts ticking.

 

 

https://www.dpa.or.th/en/file/download/deposit-protection-agency-act-no2-be2560-2

 

 

 

 

 

Thanks.

[shortstop2]

35 minutes ago, redwood1 said:

Why?  Why are they lowering the customers protection to a measly pathetic 1 million?

 

Why?

 

Very very good question....

Yes, a good question.

 

Perhaps banks have to pay an insurance premium based on covered deposits so this means the banks will make more money.

[sniggie]

7 hours ago, PFMills said:

How do you manage to spend less that 65,000 each month, we have a house and car and no finance to pay but rarely spend less than that. However I have just checked and yes we did spent less in each of the two previous months. But it hasn't been much fun!

Totally concur. As I have posted before, if I told my wife that we were going to live on less than 65k a moth I'd probably get my marching orders. 

[userabcd]

16 minutes ago, shortstop2 said:

Yes, a good question.

 

Perhaps banks have to pay an insurance premium based on covered deposits so this means the banks will make more money.

https://www.imf.org/EXTERNAL/PUBS/FT/ISSUES9/INDEX.HTM

 

Protecting bank deposits.

[userabcd]

34 minutes ago, redwood1 said:

That it was planned back in 2011 does not answer the "Why" question.....

Risk, govt are transferring risk to the banks and depositors.

Edited August 11, 2021 by userabcd

[MrJ2U]

It certainly will have an impact.

 

Do they believe this would be beneficial for foreign business to invest here in Thailand?

 

This will already add to the bad business sentiment brought on by the lack of vaccines and the lower buying power of it's citizens brought on by the Pandemic.

 

Thailand is running out of bullets to shoot itself in the foot.

 

Edited August 11, 2021 by MrJ2U