Change to deposit protection at Thai banks will have little impact

[Dante99]

2 hours ago, DLock said:

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

If anything ever inspired or gave confidence, you were misinformed or misunderstood.

[Nickelbeer]

56 minutes 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!

I certainly do not spend less than 65 thousand baht a month. I just don't keep it in a Thai bank. I need ALL of my income in an American bank to make sure my debts are covered. Aside from 500 dollars a month in credit card debt, ALL of my money is spent here. In addition to the ridiculous ATM fees I pay to withdraw my money, I have to file onerous FBAR reports every year, simply because I opened a bank account here. Once I leave this country, I will NEVER have a foreign bank account again.

[mrfill]

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

 

 

[itsari]

1 hour 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!

I spend 12000 a month and manage a skin full of beer in the process . 

Use a fan , maintain the house my self and wash the Toyota at home . I have a pension which i save the majority . How you spend 65,000 defeats me .

[TallGuyJohninBKK]

16 minutes ago, Kalasin Jo said:

Not sure that will work. I have read that this guarantee is per account holder not per account. If that is so multiple accounts even in different banks, will not help.  Please correct me if I have that wrong. 

The limit is per accountholder, and also per bank(ing company).

 

So you can have different accounts at different banks (not different branches of the same bank), and whatever regular deposit account or accounts you have with each bank company are covered up to 1 million baht per bank company.

 

"Depositors are protected up to 1 million baht per depositor per financial institution. Retail and corporate/juristic depositors of all nationalities are covered. Deposit products protected by the deposit protection scheme must be denominated in Thai baht and consists of current deposits, savings deposits, fixed deposits, certificates of deposit, and deposit receipts."

 

https://www.dpa.or.th/en/articles/view/deposit-protection-coverage-1-m-baht-per-depositor-per-institution-effective-as-of-11-aug-2021

 

Edited August 11, 2021 by TallGuyJohninBKK

[BostonRob2]

What a lot of worrybuckets (who probably don't have any money anyway). Far more risky crossing the road to the bank than having 10 million in it. Have a nice beer and chill if you have money in the bank. Have a Leo if you haven't. 

[jacko45k]

Just now, BostonRob2 said:

What a lot of worrybuckets (who probably don't have any money anyway). Far more risky crossing the road to the bank than having 10 million in it. Have a nice beer and chill if you have money in the bank. Have a Leo if you haven't. 

I do I do....

[Neeranam]

3 hours ago, webfact said:

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

Not me. This is the first I or my wife have heard about it.

[TallGuyJohninBKK]

1 minute ago, Neeranam said:

Not me. This is the first I or my wife have heard about it.

 

The periodic, ongoing DPA reductions in coverage have been regularly and repeatedly reported on in news threads here for many years....

[david555]

Just now, Neeranam said:

Not me. This is the first I or my wife have heard about it.

Because your eyes & attention  are tooo much on the " bit and other coins.... " i guess ????

[TallGuyJohninBKK]

4 minutes ago, BostonRob2 said:

What a lot of worrybuckets (who probably don't have any money anyway). Far more risky crossing the road to the bank than having 10 million in it. Have a nice beer and chill if you have money in the bank. Have a Leo if you haven't. 

 

Reminds me of the old adage...

 

How does a person end up with 1 million baht in a Thai bank?

 

Deposit 10 million to open your account.  ????

 

[Neeranam]

1 hour ago, worgeordie said:

So will depositors with large sums in their accounts, open up

more accounts at 1 Million, each or move their funds to Government

banks, Government Housing Bank, Government Savings Bank, and

the other one Agriculture Bank ? * , that would be very welcome for

the Government who seem to be spending like a drunken Sailor .

regards worgeordie      * which are covered a 100 %, unless Govt goes bust ????

I doubt it, why would they, there is little chance of the large banks going bust. 

 

I plan to deposit 10 million at the end of this year. I might put it in SCB, which is owned by the Crown Bureau, it will not go bust. 

 

I wonder what would happen if a member of the bank staff decided to steal my 10 million ; would I only be covered for 1 million baht here?

[Neeranam]

4 minutes ago, TallGuyJohninBKK said:

 

Reminds me of the old adage...

 

How does a person end up with 1 million baht in a Thai bank?

 

Deposit 10 million to open your account.  ????

 

Never heard that adage in regards to a bank. 

[TallGuyJohninBKK]

3 minutes ago, Neeranam said:

I doubt it, why would they, there is little chance of the large banks going bust. 

 

I plan to deposit 10 million at the end of this year. I might put it in SCB, which is owned by the Crown Bureau, it will not go bust. 

 

I wonder what would happen if a member of the bank staff decided to steal my 10 million ; would I only be covered for 1 million baht here?

 

The DPA doesn't cover criminal actions/fraud/theft by bank staff. No such luck.

 

You really think the Thai government would indemnify the general public against THAT!   Hahahahahaha....

 

 

Edited August 11, 2021 by TallGuyJohninBKK

[Neeranam]

8 minutes ago, TallGuyJohninBKK said:

 

The periodic, ongoing DPA reductions in coverage have been regularly and repeatedly reported on in news threads here for many years....

OK, so the OP should read, regular readers of the ThaiVisa forum have heard about it. 

[Tracyb]

3 hours ago, jacko45k said:

It was announced some time ago scheduled for this month.

…but they could have postponed it until the economy improves a bit.  I mean, they’ve waited all this time, what’s another year…or two?  

[TallGuyJohninBKK]

1 minute ago, Neeranam said:

OK, so the OP should read, regular readers of the ThaiVisa forum have heard about it. 

You mean, like folks who have amassed 20,000+ posts here?

 

[david555]

Just now, Tracyb said:

…but they could have postponed it until the economy improves a bit.  I mean, they’ve waited all this time, what’s another year…or two?  

They extended it already with 1 year on the original timing .....

[Peterphuket]

2 hours 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 took my money from the bank until below 1 million and bought gold, easy as that.

[khunpa]

Thank God I am not a multi-millionaire.

 

What a Covid-like headache it would be with all those bank books and passwords.

[Tracyb]

2 minutes ago, david555 said:

They extended it already with 1 year on the original timing .....

I understand.  But, what’s the rush?  Is the scheme underfunded?  Do they project severe losses?  I’m not a Thai baht millionaire worried about it.  I’m just curious!

[TallGuyJohninBKK]

4 minutes ago, khunpa said:

Thank God I am not a multi-millionaire.

 

What a Covid-like headache it would be with all those bank books and passwords.

 

Not to mention, there are getting to be fewer retail Thai bank options here over time (witness the recent merger of Thanachart and TMB), and the exit from local retail banking here of both Standard Chartered and before that HSBC...

 

And, for those banks that remain, for foreigners who don't have work permits, many (but not all) make it increasingly difficult for those folks to open new accounts.

Edited August 11, 2021 by TallGuyJohninBKK

[Peterphuket]

2 hours 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 !

I agree with what you say, the problem is I have to much Euro's cash here but very difficult to exchange, I'm really  worried about this.

[userabcd]

10 minutes ago, Peterphuket said:

I agree with what you say, the problem is I have to much Euro's cash here but very difficult to exchange, I'm really  worried about this.

So one could have been worrying about it since 2011 when it was first announced?

 

Walking along sukhumvit the other day noticed quite a few money  exchange places open vasu, superrich, deemoney and a few others.

Edited August 11, 2021 by userabcd

[david555]

10 minutes ago, Tracyb said:

I understand.  But, what’s the rush?  Is the scheme underfunded?  Do they project severe losses?  I’m not a Thai baht millionaire worried about it.  I’m just curious!

extending is not forever no rush at all , as they already extended   , i am surprised the covid extensions still exist while flights are available....,

[david555]

7 minutes ago, userabcd said:

So one could have been worrying about it since 2011 when it was first announced?

yes .... but not many had 20 millions baht that time  ..., but now it comes close to the immigration 800K level ....hence ...????

[userabcd]

26 minutes ago, Neeranam said:

I doubt it, why would they, there is little chance of the large banks going bust. 

 

I plan to deposit 10 million at the end of this year. I might put it in SCB, which is owned by the Crown Bureau, it will not go bust. 

 

I wonder what would happen if a member of the bank staff decided to steal my 10 million ; would I only be covered for 1 million baht here?

Nothing at all. If there is obvious theft from a bank account one would report it to the police and the bank and the money should be returned.

 

Theft by bank staff is obviously not covered by the governments bank insurance act covering failed banks.

[TallGuyJohninBKK]

29 minutes ago, userabcd said:

So one could have been worrying about it since 2011 when it was first announced?

 

 

The problem is, as the covered amounts have been getting lower and lower thru the recent years, the share of bank customers/accountholders with accounts no longer fully covered has been getting larger and larger.

 

For example, I think when they made the reduction from 10 million to 5 million, the share of bank customers with accounts that exceeded the new lower limit was only something like 0.35%...   But with the latest reduction now down to 1 million, the share of no longer fully covered depositors has risen to about 2 percent or 1.6 MILLILON now...

 

 

Edited August 11, 2021 by TallGuyJohninBKK

[ianguygil]

It is per account holder per financial institution.

 

One thing I would note is that across the world central banks increase deposit insurance when there are problems with banks, they do not decrease it. Just look at the FDIC going from 125K to 250K in the financial crisis.

 

I usually post on this forum very rarely. I must admit it is pretty amusing to see the conspiracy theorists thinking that I have some ulterior motive for posting, as if I will make money by doing it. Love it. Ignore the facts and cast accusations. It will serve you well when financial problems really happen. 

 

Enjoy ????????

[Peterphuket]

16 minutes ago, userabcd said:

So one could have been worrying about it since 2011 when it was first announced?

 

Walking along sukhumvit the other day noticed quite a few money  exchange places open vasu, superrich, deemoney and a few others.

Unfortunately, I don't stay in BKK but recently in March I was there on Yaowarat road and visit more than 10 banks to exchange my Euro's, they just don't.

I can't imagine it's any different now, even Superrich have many branches closed.