Change to deposit protection at Thai banks will have little impact

[MrJ2U]

2 hours 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. 

 

Yes.

 

Long time.

 

Might have been a good idea to postpone it for 3 years

 

[JensenZ]

14 hours 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.

Thai people have an advantage of the easiest gold buying and selling procedure in the world. A lot of people will start hording more gold. If the banks can't guarantee safety, they will keep the value locked up in safes. 1 kilo bar of 99.99% gold is valued currently at about 1.866 million baht and quite small at 118mm x 53mm x 8mm

[placeholder]

15 hours 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.

It tends to lower the value of the baht, thus making it more competitive in international trade.

[inThailand]

Change to deposit protection at Thai banks will have little impact. 

 

If that is true then why lower it from the original 10M THB?

 

Guess which customer's accounts will be gone first if the sh.t it's the fan? 

 

My gf has offerred me 20M THB protection if I let her hold my money. 

Edited August 11, 2021 by inThailand

[jacko45k]

14 hours ago, 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?  

It was already postponed once I think... anyhow, there might be more ominous reasons. There are too many banks in Thailand and some consolidation is possible. 

Edited August 11, 2021 by jacko45k

[ozzydon]

little impact like they said about covid and tourist numbers trust them haha

[newnative]

   The article says 'accounts over 1 million baht continue to rise'.  So, if that is the case, why shouldn't they be protected?  I know money can be spread over several banks but if accounts of over 1 million baht are rising, clearly some are not doing that.  I million baht protected seems very low--better to have settled on an amount perhaps between 1 and 5 million.  If someone sells a property and nets 7 million, the money would have to be spread among 7 banks--seems like a lot of needless paperwork--for both the banks and the individual.  

[jacko45k]

Correct me if I am wrong, but isn't this the Government protection that is being withdrawn or reduced? They are reducing their exposure to failing banks by no longer underwriting them? Hence the banks should become responsible for themselves and take on board some insurance or mechanism to cover depositors.

Banks can't be trusted in that respect......

 

[NoshowJones]

21 hours 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.

Best to keep the biggest whack of your money in your home countries bank and just keep enough here for living expenses. You never know what could happen in a worse than 3rd world country ruled by an unelected soldier with only a Military Academy education.

[userabcd]

35 minutes ago, jacko45k said:

Correct me if I am wrong, but isn't this the Government protection that is being withdrawn or reduced? They are reducing their exposure to failing banks by no longer underwriting them? Hence the banks should become responsible for themselves and take on board some insurance or mechanism to cover depositors.

Banks can't be trusted in that respect......

 

This is the risk govt are passing onto the private sector banks and depositors to manage ones own risk and reward for their finances.

[johnarth]

if you follow the Thai banks shares prices you will know all Thai bank shares has been falling for some months Kbank has the highest of the Thai bank shares at 105 baht each right now, what is not shown is the share price of the Chinese bank that it is affiliated with, which is the bank that has been holding up the baht value, but it is reported that the 4 big Chinese banks hold the most money in the world so?

[userabcd]

8 minutes ago, johnarth said:

if you follow the Thai banks shares prices you will know all Thai bank shares has been falling for some months Kbank has the highest of the Thai bank shares at 105 baht each right now, what is not shown is the share price of the Chinese bank that it is affiliated with, which is the bank that has been holding up the baht value, but it is reported that the 4 big Chinese banks hold the most money in the world so?

Move the money into gsb or spread it around in diff banks or keep it in another country or put in another investment vehicle or in property or gold if you are worried.

Edited August 12, 2021 by userabcd

[JetsetBkk]

22 hours ago, webfact said:

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.

 

[Ginner]

21 hours ago, david555 said:

This timing was published many years ago already in different steps , even the last 1 million was already postponed on the normal limitation day ..... , it was long time already published , only now we all look something behind it  because covid and bad economics  , which was 5 years ago not even known about it  ..... ????

Quite correct. 5/6 years ago this was announced. It has nothing to do with the present state of affairs. People spreading rumors and gossip. making people believe they are going to lose their B500,000 they have in the bank.

 

[userabcd]

extracts from from a news article in 2018

 

''Staggering 88 percent of Thai savings accounts don’t exceed THB50,000''

 

''Meanwhile, about 3 million accounts have savings between THB50,000 and THB100,000, while 4 million accounts have THB100,000 to THB500,000, and nearly 1 million accounts have THB500,000 to THB1 million''

 

So at that time a segment of the population of wealthy having bank deposits over 1 million baht is small and who would be impacted by this DPA.

Edited August 12, 2021 by userabcd

[NoshowJones]

On 8/11/2021 at 2:17 PM, Chiang Mai Will said:

What is a FCD?

Another poster who thinks he is texting.

Edited August 12, 2021 by possum1931

[Keesters]

The email snippet stated "no impact". I came here to comment if no impact why change it. Imagine my surprise to find it's now been changed to "little impact". Poor journalism. 

 

 

 

[NoshowJones]

22 hours 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?

Do you remember a few months ago, the report here on Aesia Now/TV about the millions of Baht allegedly taken by a bank employee, which has come at a high cost to the customers? It all suddenly went quiet within a day, and nothing more was heard about it.

[Neeranam]

Just now, possum1931 said:

Do you remember a few months ago, the report here on Aesia Now/TV about the millions of Baht allegedly taken by a bank employee, which has come at a high cost to the customers? It all suddenly went quiet within a day, and nothing more was heard about it.

No, I don't. 

 

I take it the bank was not held responsible?

[NoshowJones]

1 minute ago, Neeranam said:

No, I don't. 

 

I take it the bank was not held responsible?

I don't know, it went all quiet.

[Peterphuket]

23 hours ago, Neeranam said:

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

 

 

Recently I was happy to sold my 2 condo's and yes they transfer it to my account, but as soon as possible I withdraw the money until less than 1 million.

[2umich]

On 8/11/2021 at 1:37 PM, david555 said:

This timing was published many years ago already in different steps , even the last 1 million was already postponed on the normal limitation day ..... , it was long time already published , only now we all look something behind it  because covid and bad economics  , which was 5 years ago not even known about it  ..... ????

I didn't know and care about this information before they announced it. But what I saw after announcement are queues in the banks. It is absolutely straight forward and predictable reaction for people.

[MrJ2U]

On 8/11/2021 at 2:16 PM, Nickelbeer said:

That's why I use an agent. I am not importing 65 thousand baht into Thailand merely to get an extension. Agents mitigate that problem quite nicely. While paying 500 dollars to be allowed to spend your money in Thailand is a ripoff, it is my only option until the Covid insanity ends and I can move to more welcoming shores.

Couldn't agree more.

 

A good agent can simplify thing's and make your life easier, why not?

[david555]

Just now, 2umich said:

I didn't know and care about this information before they announced it. But what I saw after announcement are queues in the banks. It is absolutely straight forward and predictable reaction for people.

Those que 's are probably the covid queues  after the new restrictions bank impose ....???? many banks closing some branches or restricting the number of persons can go inside at a time ....

Oh boy ...!what a panic by some , now they restrict that long time announced lower deposit protection....????

[2umich]

On 8/11/2021 at 2:07 PM, Liverpool Lou said:

The people you refer to as being unable to pay their debts are not going to be affected by the DPA guarantee which safeguards accounts with up to B1,000,000 in them!   

 

How does the reduction in the level of protection affect anyone when there are no banks going bust?

When a lot of people unable to pay debt there less money in the bank. And in case critical mass of people start panic (due to announcement like this one), and rash to withdraw money... Bank can become kinda insolvent.

[2umich]

1 minute ago, david555 said:

Those que 's are probably the covid queues  after the new restrictions bank impose ....???? many banks closing some branches or restricting the number of persons can go inside at a time ....

Oh boy ...!what a panic by some , now they restrict that long time announced lower deposit protection....????

The problem is that the panic can cause bank insolvency.

[david555]

6 minutes ago, 2umich said:

The problem is that the panic can cause bank insolvency.

and many can even not wit draw all, as half from their 800K  must stay on bank .... 400 K can be taken of after 3 months from ret.ext. stamp date ...until 2 months before the new ret.ext must be completed to 800K full.

 

Forget the panic .... its  O.K.  Thailand has a very big buffer foreign currency .... hence it is "Teflon Baht "....

Edited August 12, 2021 by david555

[2umich]

1 minute ago, david555 said:

and many can even not wit draw all, as half from their 800K  must stay on bank .... 400 K can be taken of after 3 months from ret.ext. stamp  ...until 2 months before the new ret.ext must be completed to 800K full.

Forget the panic .... its  O.K.  Thailand has a very big buffer foreign currency .... hence it is Teflon Baht 

I withdrew the money, no reason to panic ????.

[MrJ2U]

8 hours ago, possum1931 said:

Do you remember a few months ago, the report here on Aesia Now/TV about the millions of Baht allegedly taken by a bank employee, which has come at a high cost to the customers? It all suddenly went quiet within a day, and nothing more was heard about it.

Hundreds, perhaps more than 400, investors have been allegedly defrauded by an assistant bank manager at a Kasikorn bank branch in Pattaya.

 

The bank branch in the centre of this mess have been “instructed” to tell affected customers that “they will not be reimbursing the monies” as “the products sold to customers were not official bank products”.

 

There is a lawsuit against the ex manager who's in jail.

 

There trying to get reimbursed by the bank but the bank has declined.

 

 

 

 

[Mickeymaus]

42 minutes ago, 2umich said:

When a lot of people unable to pay debt there less money in the bank. And in case critical mass of people start panic (due to announcement like this one), and rash to withdraw money... Bank can become kinda insolvent.

They have to learn from the EZB. They don't need and like savings anymore and simply print the money.