1MB guranteed by the Thai banks?

[crazykopite]

A couple of months ago the 3 million baht cover that all banks guaranteed should they go bust was reduced to 1 million baht and very little warning was given which makes it difficult for some foreigners who like my friend deposited 3 million baht to get a 10 year type visa I made him aware of the situation and he managed to open up accounts in several banks to protect his money I think he told me the 3 million had to be in the bank untouched for a number of years whether having drawn out 2 million to protect his money will have any effect on his visa I’m sure at some stage he will find out . I to reduced my balance under just under the million baht by purchasing a jet ski which I was going to do anyway . It’s no good having 3 savings accounts in the one branch either as only one account would be covered I think it’s highly unlikely they would go bust but having been a share holder in the U.K. Bradford & Bingley bank I lost several £1000s when the U.K. refused to step in and help them so now days I don’t take any risks 

[userabcd]

28 minutes ago, crazykopite said:

A couple of months ago the 3 million baht cover that all banks guaranteed should they go bust was reduced to 1 million baht and very little warning was given which makes it difficult for some foreigners who like my friend deposited 3 million baht to get a 10 year type visa I made him aware of the situation and he managed to open up accounts in several banks to protect his money I think he told me the 3 million had to be in the bank untouched for a number of years whether having drawn out 2 million to protect his money will have any effect on his visa I’m sure at some stage he will find out . I to reduced my balance under just under the million baht by purchasing a jet ski which I was going to do anyway . It’s no good having 3 savings accounts in the one branch either as only one account would be covered I think it’s highly unlikely they would go bust but having been a share holder in the U.K. Bradford & Bingley bank I lost several £1000s when the U.K. refused to step in and help them so now days I don’t take any risks 

''very little warning was given which makes it difficult for some foreigners''

 

If one read up on this the Thai deposit guarantee was first implemented in 2008.

 

After that it was lowered to 50 million baht and has then gradually been lowered to 1 mil baht.

 

In 2012 it was announced to be lowered to 1 million baht but was not (it was in the news), and so gradually lowered over the years since then.

 

So one would think enough time for one to research and get info, ask questions at the bank about their personal financial affairs.

 

Most Thais do not have 1 million  baht in the bank so this ceiling protection covers most of them.

Edited November 1, 2021 by userabcd

[Raphael Hythlodaeus]

On 10/31/2021 at 9:58 AM, 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?

No, to my knowledge the 1 MB only covers bank deposits.

However, in 1997 my Thai stock broker went bust. Cash deposits were frozen but paid back with a repayment scheme lasting several years. The stocks were transferred to another broker immediately after setting up an account at the new broker. I would expect the same thing to happen again in another financial meltdown.

If you have stocks and cash with a Thai broker and you are concerned about this then I suggest you contact them directly.

[DaLa]

1 hour ago, userabcd said:

Nonsense, deposits covered under the rules of per institution and financial instrument up to the guarantee is paid out.

Absolutely correct. The 'banking' crises of 2007-08 (GFC) proved this. I had funds with  an Icelandic bank and several others as I had just sold my property in the UK. At the time the UK bank deposit scheme only protected the first £2000 and then 90% of the next £30,000.  I had £50k in the Icelandic bank invested as a 1 year bond returning 7% Interest.

  

The UK government paid me the £50k and also honoured the 7% interest.

[Chris.B]

1 hour ago, crazykopite said:

A couple of months ago the 3 million baht cover that all banks guaranteed should they go bust was reduced to 1 million baht and very little warning was given 

Nonsense, the reduction has been known for a long time.

 

[Percy P]

On 10/31/2021 at 10:08 AM, tonray said:

If your stocks decline in value or become worthless...no country in the world will insure against that.

Don't invest what you can't afford to lose.

[tonray]

22 minutes ago, Percy P said:

Don't invest what you can't afford to lose.

True but with inflation running much higher than savings rates, you cannot afford to not invest !

[khunPer]

On 10/31/2021 at 3:58 AM, villageidiotY2K said:

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?

The one million baht seems to work similar to for example European guaranties for a possible bank crash, so yes, if your bank is gone, you'll get up to one million baht covered...????

 

The risk for bankruptcy of the mentioned banks are as great - or small - as many major banks around the World, SCB for example survived the 1997 Asian crash, and will likely also survive another crisis (Disclaimer: I'm not giving you any personal guarantee, just an opinion)...????

 

SET (Stock Exchange of Thailand) is not covered by any guarantee, putting money there just like playing the lottery; however it might be a quite Okay lottery if you buy the right numbers - I don't complain...????

[CartagenaWarlock]

On 10/30/2021 at 9:58 PM, villageidiotY2K said:

Is there really a chance a big bank like Banngkok bank, Siam bank, Kashikorn bank, etc be bankrupt???

You're asking in a forum of people  have escaped their own country to find brides in a foreign land and take refuge in another country. Good luck with refugees' economic assessment. 

Edited November 1, 2021 by CartagenaWarlock

[Neeranam]

On 10/31/2021 at 10:26 AM, 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? 

There is no chance banks like SCB will go bankrupt, they are owned by The Crown Bureau. 

Also, the GSB is safe. 

 

There is very little chance of a bank going bust, but i remember one -  Bangkok Commercial Bank, about 25 years ago. 

 

I don't know why this concerns people so much. 

[Neeranam]

On 11/1/2021 at 10:53 AM, userabcd said:

Most Thais do not have 1 million  baht in the bank so this ceiling protection covers most of them.

 Most foreigners too, so most people.