Change to deposit protection at Thai banks will have little impact

[Bangkok Barry]

3 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'm glad you know this. You'd better warn the banks and governments about what they're doing. And, at the same time, ask them why they are knowingly trashing the world economy, Let us know their answer. Thanks.

[david555]

4 minutes ago, Bangkok Barry said:

I'm glad you know this. You'd better warn the banks and governments about what they're doing. And, at the same time, ask them why they are knowingly trashing the world economy, Let us know their answer. Thanks.

They know it sir ...they know it ,..... they are just hoping we don't believe it  ...., and trying to anticipate  and make us take the losses.....as usual every X.. time in history .... ????

[Thaifly88]

3 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.

So don’t keep more than 1 mill THB in any single bank. It makes sense, as you say, that smaller banks will benefit from customers spreading their risks. However, in the event of a collapse of a bank, it is also more likely to be a smaller bank. Holding money in a few different banks makes sense, maybe the larger banks are the best bet.

[userabcd]

3 hours ago, EricTh said:

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

 

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.

Edited August 11, 2021 by userabcd

[Neeranam]

5 minutes ago, Thaifly88 said:

So don’t keep more than 1 mill THB in any single bank. It makes sense, as you say, that smaller banks will benefit from customers spreading their risks. However, in the event of a collapse of a bank, it is also more likely to be a smaller bank. Holding money in a few different banks makes sense, maybe the larger banks are the best bet.

Some of us need to keep more than 1 million in the bank, when selling a house, for example.

 

 

[Neeranam]

There really is no need for worry, how many Thai banks do you know that have gone out of business?

 

 

 

[Neeranam]

With the future of banks uncertain, due to DeFI, it makes sense to keep your savings in digital assets. 

 

 

[garyk]

800K for me to stay in Thailand if I wanted to. If the bank failed, as a foreigner I would be skeptical at best of getting a dime back.

[Almer]

It will have a lasting effect on an account with 1.8 million.

[david555]

7 minutes ago, Neeranam said:

Some of us need to keep more than 1 million in the bank, when selling a house, for example.

 

 

Even then you can spread it on different banks ...

[userabcd]

1 minute ago, garyk said:

800K for me to stay in Thailand if I wanted to. If the bank failed, as a foreigner I would be skeptical at best of getting a dime back.

Nonsense, you would present your evidence and get your money back from the Thai government.

[Almer]

9 minutes ago, Neeranam said:

There really is no need for worry, how many Thai banks do you know that have gone out of business?

 

 

 

None, Yet.

[david555]

6 minutes ago, Neeranam said:

With the future of banks uncertain, due to DeFI, it makes sense to keep your savings in digital assets. 

 

 

The top of the Pyramid thanks you for your contribution  ....????

[TallGuyJohninBKK]

25 minutes ago, Neeranam said:

There really is no need for worry, how many Thai banks do you know that have gone out of business?

Quite a few in past years... Thai banks have a history of coming and going....  even if people posting here today may not remember their departures or takeovers/bailouts by others. Look at the list of names below (the bottom two-thirds of the list), and see how many of them no longer exist under those names from 20+ years ago.

 

 

This is an old document. I don't know of any currently available weblink to it.

 

Edited August 11, 2021 by TallGuyJohninBKK

[Emdog]

"If it ain't broke, don't fix it" Well, they did a fix that does make a rational person ask "why, is something broken"?

[Neeranam]

3 minutes ago, david555 said:

The top of the Pyramid thanks you for your contribution  ....????

What do you mean?

[david555]

Just now, Neeranam said:

What do you mean?

we had that discussion already on a different post about bitcoin and others  .... so same as that time  , a pyramid scheme risky but  not a problem for gamblers , same as poker knowing do  when ...what .... ????

[TallGuyJohninBKK]

21 minutes ago, userabcd said:

Nonsense, you would present your evidence and get your money back from the Thai government.

 

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

 

Edited August 11, 2021 by TallGuyJohninBKK

[Etaoin Shrdlu]

29 minutes ago, Neeranam said:

There really is no need for worry, how many Thai banks do you know that have gone out of business?

 

 

 

Bangkok Bank of Commerce in 1996. Remember Rakesh Saxena?

[Neeranam]

11 minutes ago, david555 said:

we had that discussion already on a different post about bitcoin and others  .... so same as that time  , a pyramid scheme risky but  not a problem for gamblers , same as poker knowing do  when ...what .... ????

I can't  remember that.

 

Are you saying that DeFi is a pyramid scheme?

 

Of course Bitcoin is not, but I am not talking about that. 

[Neeranam]

1 minute ago, Etaoin Shrdlu said:

Bangkok Bank of Commerce in 1996. Remember Rakesh Saxena?

I remember that bank but not the guy. 

[Etaoin Shrdlu]

1 minute ago, Neeranam said:

I remember that bank but not the guy. 

Google his name. I followed the story of Bangkok Bank of Commerce while it was unfolding. Saxena fought extradition from Canada for 13 years, but eventually he was brought back to Thailand to face the music and was sentenced to 10 years in prison for embezzlement. This isn't really a good example of a Thai bank going under because of business conditions, but rather a case of misconduct and criminal activity. It does make for interesting reading. BBC did collapse and was taken over by the Bank of Thailand.

[TallGuyJohninBKK]

15 minutes ago, Neeranam said:

I remember that bank but not the guy. 

He was one of the bankers you could trust..... (  ????  )

 

The collapse of Bangkok Bank of Commerce due to fraud and corruption was a precursor to the ensuing Asian Financial Meltdown.

 

 

 

Edited August 11, 2021 by TallGuyJohninBKK

[Griffo63]

Does anyone know the status of joint accounts? My wife and I both have accounts in our own names with the same bank and in addition we have a joint account with that bank too. 
 

I understand how our personal accounts might be treated in the event of a bank failure but what about the joint account?

 

Should we be moving it to another bank? 

[TallGuyJohninBKK]

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."

 

 

Edited August 11, 2021 by TallGuyJohninBKK

[TallGuyJohninBKK]

15 minutes ago, Griffo63 said:

Does anyone know the status of joint accounts? My wife and I both have accounts in our own names with the same bank and in addition we have a joint account with that bank too. 
 

I understand how our personal accounts might be treated in the event of a bank failure but what about the joint account?

 

Should we be moving it to another bank? 

 

 

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

 

 

[Neeranam]

22 minutes ago, Griffo63 said:

Should we be moving it to another bank? 

Do you have over 1 million baht in it?

[userabcd]

10 minutes ago, TallGuyJohninBKK said:

 

 

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

 

 

So John will get 1 million baht and sarah will get 850000 baht from the DPA.

[TallGuyJohninBKK]

2 minutes ago, userabcd said:

So John will get 1 million baht and sarah will get 850000 baht from the DPA.

Think so!  I should have noted, that FAQs document above from DPA pre-dated the current 1 million baht per depositor / per institution limit.

 

But, it does explain the concept of how they go about assessing joint accounts for DPA protection purposes.

 

[shortstop2]

5 hours ago, brucegoniners said:

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.

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.