villageidiotY2K Posted October 31, 2021 Share Posted October 31, 2021 Recently I've heard Thai banks only guarantees 1MB per account holders. Does this mean when the bank busts, they only pays to the accoun holder no more than 1MB? Is there really a chance a big bank like Banngkok bank, Siam bank, Kashikorn bank, etc be bankrupt??? Also how about if you transffer some of your monies to Stock exchange of Thailand in terms of holding stocks? Are they covered till 1MB as well? 1 Link to comment Share on other sites More sharing options...
Popular Post tonray Posted October 31, 2021 Popular Post Share Posted October 31, 2021 9 minutes ago, villageidiotY2K said: Also how about if you transffer some of your monies to Stock exchange of Thailand in terms of holding stocks? Are they covered till 1MB as well? If your stocks decline in value or become worthless...no country in the world will insure against that. 6 1 1 Link to comment Share on other sites More sharing options...
Popular Post skatewash Posted October 31, 2021 Popular Post Share Posted October 31, 2021 Quote From August 11, 2021 Thai Baht Deposits are protected under the Deposit Protection Agency Act up to a maximum of one million baht per one depositor per financial institution. https://www.bangkokbank.com/en/Personal/Tips-and-Insights/Save-and-Invest/Practical-advice-on-deposit-protection Any business can go bankrupt for a variety of reasons. It is very unlikely in my opinion that any of the major Thai banks would suffer this fate. The painful 1997 Thai financial crisis resulted in a sounder banking situation in Thailand. Deposit insurance schemes never cover accounts that subject the principle to market fluctuation which eliminates any stocks. If principle is at risk there is no coverage from deposit insurance. 7 1 Link to comment Share on other sites More sharing options...
Popular Post Gsxrnz Posted October 31, 2021 Popular Post Share Posted October 31, 2021 It's a government guarantee of 1M Baht for bank accounts only. Assuming they have to actually pay out the 1M Baht when a large bank crashes, the 1M Baht will probably have enough value to purchase a cup of coffee. 3 1 4 Link to comment Share on other sites More sharing options...
Popular Post villageidiotY2K Posted October 31, 2021 Author Popular Post Share Posted October 31, 2021 thanks for yours share. I've opened 3 new different bank accounts. TTB, Krungthai and Siam bank. And currently hold 5 different bank accounts.... But i dont have any more bank accounts to distribute. So if I transffer say 5MB to Thai stock exchange account (SET), holding it as cash balance, not as stock, might be safer than keeping them in a thai banks? 3 Link to comment Share on other sites More sharing options...
Popular Post userabcd Posted October 31, 2021 Popular Post Share Posted October 31, 2021 (edited) This was announced and debated a few months ago. Yes, deposits in certain registered Thai banks are guaranteed up to 1 million baht. Investing in shares and funds are at your own risk as is anywhere in the world. Edited October 31, 2021 by userabcd 3 Link to comment Share on other sites More sharing options...
Popular Post mark5335 Posted October 31, 2021 Popular Post Share Posted October 31, 2021 (edited) "Recently I've heard Thai banks only guarantees 1MB per account holders. Does this mean when the bank busts, they only pays to the account holder no more than 1MB? Is there really a chance a big bank like Bangkok Bank, Siam Commercial bank, Kasikorn bank, etc be bankrupt?" Two months ago the Deposit Protection Agency of the Thai Gov't reduced the amount it guarantees to Thai baht deposit-holders from 5MB to 1MB. This was expected and in line with the stated policy since the Global Financial Crisis more than 10 years ago. In terms of "Thai banks only guaranteeing 1MB" this is false (or poorly worded) as your 'Thai bank' guarantees 100% of ALL amounts in Thai baht that you deposit with them. If the limited 1MB gov't guarantee concerns you then open accounts with several banks in Thailand and cap each deposit at 1MB. If the bank 'goes bust' or loses its license, then under the DPA legislation you are entitled to recover a minimum of 1MB within 30 days. It's worth noting that the 5 largest banks (including the 3 that you mentioned) are specifically designated as 'systemically important' and therefore the Thai Gov't / Bank of Thailand would step in and provide liquidity support to such banks and therefore their chances of going bankrupt are remote. Both the Thai Gov't and these systemically important banks have 'investment grade' (i.e., they're not 'junk') risk rating issued by the major international rating agencies banks. Furthermore, Thai banks have a higher than average capital adequacy ratio at over 20% compared to the international standard set in Basel of 12% as well as strong liquidity at an average of 195% compared to the standard of 100%. So, in brief fret not about the security of your funds in Thai banks; I would be more concerned about your investments on the SET. Edited October 31, 2021 by mark5335 3 3 Link to comment Share on other sites More sharing options...
vinny41 Posted October 31, 2021 Share Posted October 31, 2021 Who is protected? Foreigners with Thai baht deposit accounts at member financial institutions in Thailand are also protected under the Deposit Protection Agency Act. However, “Non-Resident Baht Accounts” as defined in the Exchange Control Act B.E. 2485 (1942) are not protected. https://www.dpa.or.th/en/articles/view/who-is-protected 2 Link to comment Share on other sites More sharing options...
Popular Post david555 Posted October 31, 2021 Popular Post Share Posted October 31, 2021 Even deposit account in a foreign currency is NOT under the 1 million deposit guaranteed 3 Link to comment Share on other sites More sharing options...
vinny41 Posted October 31, 2021 Share Posted October 31, 2021 1 minute ago, david555 said: Even deposit account in a foreign currency is NOT under the 1 million deposit guaranteed That is not correct Financial products or certain deposit products that are not protected include: Foreign currency deposit accounts (SSF, RMF) Money invested in bonds, debentures, mutual and tax-saving funds (SSF and RMF) Deposits in cooperatives Cashier’s cheques and bills of exchange Electronic money (e-money) Savings insurance products offered by insurance companies https://www.dpa.or.th/en/articles/view/protected-deposit-products Link to comment Share on other sites More sharing options...
Popular Post Pravda Posted October 31, 2021 Popular Post Share Posted October 31, 2021 37 minutes ago, Gsxrnz said: It's a government guarantee of 1M Baht for bank accounts only. Assuming they have to actually pay out the 1M Baht when a large bank crashes, the 1M Baht will probably have enough value to purchase a cup of coffee. Every now and then a thread like this comes up. The above perfectly summarizes the unlikely scenario. 4 1 Link to comment Share on other sites More sharing options...
david555 Posted October 31, 2021 Share Posted October 31, 2021 (edited) 8 minutes ago, vinny41 said: That is not correct Financial products or certain deposit products that are not protected include: Foreign currency deposit accounts (SSF, RMF) Money invested in bonds, debentures, mutual and tax-saving funds (SSF and RMF) Deposits in cooperatives Cashier’s cheques and bills of exchange Electronic money (e-money) Savings insurance products offered by insurance companies https://www.dpa.or.th/en/articles/view/protected-deposit-products Well ....! if you are convinced that a foreign currency account is under that protection i suggest you go to a main branche to have confirmation on that ...... i know you shall be disappointed with the answer .... I speak about a foreign currency deposit account , not about any other whatever you mentioned Thai deposit protection act..pdf Edited October 31, 2021 by david555 1 Link to comment Share on other sites More sharing options...
vinny41 Posted October 31, 2021 Share Posted October 31, 2021 1 minute ago, david555 said: Well ....! if you are convinced that a foreign currency account is under that protection i suggest you go to a main branche to have confirmation on that ...... i know you shall be disappointed with the answer .... I speak about a foreign currency deposit account , not about any other whatever you mentioned Did you read my post before replying Financial products or certain deposit products that are not protected include: Foreign currency deposit accounts https://www.dpa.or.th/en/articles/view/protected-deposit-products Link to comment Share on other sites More sharing options...
david555 Posted October 31, 2021 Share Posted October 31, 2021 Just now, vinny41 said: Did you read my post before replying Financial products or certain deposit products that are not protected include: Foreign currency deposit accounts https://www.dpa.or.th/en/articles/view/protected-deposit-products Read the deposit act i just uploaded in my former reply than you might understand Link to comment Share on other sites More sharing options...
vinny41 Posted October 31, 2021 Share Posted October 31, 2021 4 minutes ago, david555 said: Read the deposit act i just uploaded in my former reply than you might understand the Pdf file that you uploaded doesn't mention anything about Foreign currency deposit accounts which this link does Financial products or certain deposit products that are not protected include: Foreign currency deposit accounts https://www.dpa.or.th/en/articles/view/protected-deposit-products Link to comment Share on other sites More sharing options...
david555 Posted October 31, 2021 Share Posted October 31, 2021 2 minutes ago, vinny41 said: the Pdf file that you uploaded doesn't mention anything about Foreign currency deposit accounts which this link does Financial products or certain deposit products that are not protected include: Foreign currency deposit accounts https://www.dpa.or.th/en/articles/view/protected-deposit-products I give up .... i don't have a habit to preach in the Dessert ......???? 1 Link to comment Share on other sites More sharing options...
tonray Posted October 31, 2021 Share Posted October 31, 2021 55 minutes ago, skatewash said: Deposit insurance schemes never cover accounts that subject the principle to market fluctuation which eliminates any stocks. If principle is at risk there is no coverage from deposit insurance. The thing that they do in the USA at least is offer SIPC protection in case the broker/firm you are using goes belly up. This is limited to $500K US but many reputable brokers have private insurance up to $5 million in case of firm failure. 1 Link to comment Share on other sites More sharing options...
Popular Post vinny41 Posted October 31, 2021 Popular Post Share Posted October 31, 2021 The deposit agency make it crystal clear what is covered Protected Deposit Products Protected deposit products are deposit accounts that are opened at member financial institutions under the Deposit Protection Agency Act. They must be denominated in Thai baht and must be opened within the country. Currently, there are 5 types of protected deposits: Current deposit accounts Savings deposit accounts Fixed deposit accounts Certificates of deposit Deposit receipts https://www.dpa.or.th/en/articles/view/protected-deposit-products So that means FCD ( Foreign currency deposit accounts) in Euros, Dollars Sterling or any other currency excluding Thai baht are not covered by the Protected deposit 2 1 Link to comment Share on other sites More sharing options...
david555 Posted October 31, 2021 Share Posted October 31, 2021 (edited) 6 minutes ago, vinny41 said: The deposit agency make it crystal clear what is covered Protected Deposit Products Protected deposit products are deposit accounts that are opened at member financial institutions under the Deposit Protection Agency Act. They must be denominated in Thai baht and must be opened within the country. Currently, there are 5 types of protected deposits: Current deposit accounts Savings deposit accounts Fixed deposit accounts Certificates of deposit Deposit receipts https://www.dpa.or.th/en/articles/view/protected-deposit-products So that means FCD ( Foreign currency deposit accounts) in Euros, Dollars Sterling or any other currency excluding Thai baht are not covered by the Protected deposit To be sure you understand i put it marked on YOUR pdf a bit clear for you to read , marked in Red and Yellow and even an red Arrow ....???? Deposit Protection Agency (DPA).pdf Edited October 31, 2021 by david555 Link to comment Share on other sites More sharing options...
vinny41 Posted October 31, 2021 Share Posted October 31, 2021 38 minutes ago, vinny41 said: That is not correct Financial products or certain deposit products that are not protected include: Foreign currency deposit accounts (SSF, RMF) Money invested in bonds, debentures, mutual and tax-saving funds (SSF and RMF) Deposits in cooperatives Cashier’s cheques and bills of exchange Electronic money (e-money) Savings insurance products offered by insurance companies https://www.dpa.or.th/en/articles/view/protected-deposit-products 9 minutes ago, david555 said: To be sure you understand i put it marked on YOUR pdf a bit clear for you to read , marked in Red and Yellow and even an red Arrow ....???? Deposit Protection Agency (DPA).pdf 200.42 kB · 4 downloads Which is what I wrote in my original post Thank You Link to comment Share on other sites More sharing options...
david555 Posted October 31, 2021 Share Posted October 31, 2021 2 minutes ago, vinny41 said: Which is what I wrote in my original post Thank You So why your first reply said i was not correct , i should it said more easy understandable that only accounts on Thai bank in Thai currency is covered....as it seems now you admit my post was correct Link to comment Share on other sites More sharing options...
Chivas Posted October 31, 2021 Share Posted October 31, 2021 Good luck as a foreigner if you ever have to "claim" on that 1 Million Baht guarantee The outcome will be somewhere between Bob Hope and no hope................................... 1 2 Link to comment Share on other sites More sharing options...
nobodysfriend Posted November 1, 2021 Share Posted November 1, 2021 21 hours ago, skatewash said: https://www.bangkokbank.com/en/Personal/Tips-and-Insights/Save-and-Invest/Practical-advice-on-deposit-protection Any business can go bankrupt for a variety of reasons. It is very unlikely in my opinion that any of the major Thai banks would suffer this fate. The painful 1997 Thai financial crisis resulted in a sounder banking situation in Thailand. Deposit insurance schemes never cover accounts that subject the principle to market fluctuation which eliminates any stocks. If principle is at risk there is no coverage from deposit insurance. Good post , but the link provides the usual blabla only like : " Depositors shall neither have concerns in, nor take part in, any process pertinent to insured deposits when an insured financial institution’s license is revoked. Reimbursement shall be made within a certain period of time. " Of course ... but , as you said , they have ( hopefully ) learned a lot from the last big crisis ... SCB , for example , is partially owned ( 25% ) by the one who's name cannot be mentioned ... and therefore well protected against bankruptcy ... Link to comment Share on other sites More sharing options...
aBigSmile Posted November 1, 2021 Share Posted November 1, 2021 21 hours ago, villageidiotY2K said: thanks for yours share. I've opened 3 new different bank accounts. TTB, Krungthai and Siam bank. And currently hold 5 different bank accounts.... But i dont have any more bank accounts to distribute. So if I transffer say 5MB to Thai stock exchange account (SET), holding it as cash balance, not as stock, might be safer than keeping them in a thai banks? No it won't. The exchange retains any excess cash with the banking system. If it goes down, so does your money. Link to comment Share on other sites More sharing options...
Purdey Posted November 1, 2021 Share Posted November 1, 2021 I have a government savings bank account. I asked them how much they guarantee and was told 100% of your savings as they don't come under commercial bank rules. Do ask them to confirm this. 2 Link to comment Share on other sites More sharing options...
Henryford Posted November 1, 2021 Share Posted November 1, 2021 20 hours ago, Chivas said: Good luck as a foreigner if you ever have to "claim" on that 1 Million Baht guarantee The outcome will be somewhere between Bob Hope and no hope................................... I have always assumed that these "guarantees", even in the West, are worthless. 1 Link to comment Share on other sites More sharing options...
Danderman123 Posted November 1, 2021 Share Posted November 1, 2021 16 minutes ago, Henryford said: I have always assumed that these "guarantees", even in the West, are worthless. US bank accounts up to $250,000 are insured by the FDIC, and, yes, they have paid out when required. 1 Link to comment Share on other sites More sharing options...
userabcd Posted November 1, 2021 Share Posted November 1, 2021 (edited) 21 hours ago, Chivas said: Good luck as a foreigner if you ever have to "claim" on that 1 Million Baht guarantee The outcome will be somewhere between Bob Hope and no hope................................... Nonsense. You probably have to make a claim to the govt agency and it will be paid back to you up to 1 million baht. Edited November 1, 2021 by userabcd Link to comment Share on other sites More sharing options...
userabcd Posted November 1, 2021 Share Posted November 1, 2021 52 minutes ago, Henryford said: I have always assumed that these "guarantees", even in the West, are worthless. Nonsense, deposits covered under the rules of per institution and financial instrument up to the guarantee is paid out. 1 Link to comment Share on other sites More sharing options...
userabcd Posted November 1, 2021 Share Posted November 1, 2021 1 hour ago, Purdey said: I have a government savings bank account. I asked them how much they guarantee and was told 100% of your savings as they don't come under commercial bank rules. Do ask them to confirm this. Yes, some government banks guarantee savings 100% 1 Link to comment Share on other sites More sharing options...
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