Can I assume that the 2 safest banks in LOS is Govt savings bank and the Agriculture bank?

[ubonr1971]

Its my understanding that theres a 1 mill baht govt guarantee on deposits in any Thai bank??

 

Can I assume that the 2 safest banks are the actual govt banks: GSB (govt savings bank) and the Agriculture bank? Surely it would be safe to hold more than 1 million in either of these 2?

 

Comments...

[Gaccha]

All baht deposits in all Thai banks are protected up to 1 million baht by the Deposit Protection Agency Act. 

[proton]

20 minutes ago, Gaccha said:

All baht deposits in all Thai banks are protected up to 1 million baht by the Deposit Protection Agency Act. 

I can just imagine getting that back! still waiting for the government money back promise on the car insurance from a year ago which went bust. The compensation money will all get used up in a few days and most will get nothing, same with the car insurance 'protection'

[liddelljohn]

The safest Thai bank is probably SCB as Royal Family are major shareholders  many wealthy and HISO thais  prefer it as its unlikey to go bust

 

GSB  and Agricultural banks are OK but very limited services as they are aimed primarily at Thais and farmers

 

Over the  years never seen problems with SCB or Krungsri Banks but seen lots of problems  people have had with Kasikorn {thai farmers]   and also bangkok bank .

[Etaoin Shrdlu]

Government-owned banks would presumably carry the same credit rating as Thailand itself, which is BBB+ per Standard and Poor.

 

Bangkok Bank and Bank of Ayutthaya also carry a S&P rating of BBB+. SCB and Kasikorn were downgraded last year to BBB. Krungthai is BBB-. Krungsri was rated BBB+ back in April 2020, but I don't know if this has changed in the meantime.

 

An S&P rating of BBB- is considered the lowest "investment grade" rating.

 

https://www.theasianbanker.com/press-releases/four-thai-banks-downgraded-as-structural-issues-persist;-outlooks-stable

 

Rating agencies are not infallible, but at least there is an attempt to provide a systematic estimate of creditworthiness. These ratings reflect the banks' financial strength and have little or no bearing on whether they are consumer-friendly.

[Lorry]

12 minutes ago, Etaoin Shrdlu said:

Bank of Ayutthaya also carry a S&P rating of BBB+.

 

12 minutes ago, Etaoin Shrdlu said:

Krungsri was rated BBB+ back in April 2020, but I don't know if this has changed in the meantime.

Krungsri = Bank of Ayutthaya 

[Etaoin Shrdlu]

5 minutes ago, Lorry said:

 

Krungsri = Bank of Ayutthaya 

Thanks. Missed that.

 

[Celsius]

9 hours ago, liddelljohn said:

The safest Thai bank is probably SCB as Royal Family are major shareholders  many wealthy and HISO thais  prefer it as its unlikey to go bust

 

Exactly.

 

And if one of the insured banks would fail that would mean the baht would nosedive. The 1 million baht insurance would be meaningless. Thailand is not like USA where there are million little banks, so the deposit guaranteed by the government actually carries some weight. 

 

Thailand banking system is more like Canada. Imagine TD or Royal Bank collapsing. That 100,000 Canadian insurance would be meaningless. 

Edited January 21, 2023 by Celsius

[ubonr1971]

11 hours ago, Etaoin Shrdlu said:

Government-owned banks would presumably carry the same credit rating as Thailand itself, which is BBB+ per Standard and Poor.

 

Bangkok Bank and Bank of Ayutthaya also carry a S&P rating of BBB+. SCB and Kasikorn were downgraded last year to BBB. Krungthai is BBB-. Krungsri was rated BBB+ back in April 2020, but I don't know if this has changed in the meantime.

 

An S&P rating of BBB- is considered the lowest "investment grade" rating.

 

https://www.theasianbanker.com/press-releases/four-thai-banks-downgraded-as-structural-issues-persist;-outlooks-stable

 

Rating agencies are not infallible, but at least there is an attempt to provide a systematic estimate of creditworthiness. These ratings reflect the banks' financial strength and have little or no bearing on whether they are consumer-friendly.

What about Kiatakin bank. Do you know their credit rating??

thanks

[nigelforbes]

I read an assessment that said Bangkok Bank is of major importance to the country because it is the largest by number of branches and accounts, most of whom are small balance account holders. The continued safety of the bank is vital to maintaining consumer confidence in the Thai banking system and the BOT and that the bank would be protected at all costs. That makes a lot of sense to me. 

[Foxx]

14 hours ago, ubonr1971 said:

Its my understanding that theres a 1 mill baht govt guarantee on deposits in any Thai bank??

Wrong.  Only certain banks are covered by the Deposit Protection Agency.  They are listed on its website at https://www.dpa.or.th/en/articles/view/list-of-insured-financial-institutions

 

14 hours ago, ubonr1971 said:

GSB (govt savings bank) and the Agriculture bank

Neither of these is covered by the DPA.  In fact, none of the 100% government owned banks is covered.  (Krung Thai, which is majority owned by the government, is covered.)

[jippytum]

Lots of misinformation on this subject . The GSB  is the only bank in Thailand to guarantee 100 %  your deposit .Other banks the guarantee is restricted to one million baht per deposit.

Mind you if there was a run on the banks i would expect the GSB to remove the guarantee for foreigners  .Like most Thai institutions laws and small print can be changed to the detriment of foreigners in a heartbeat.

[RayOday]

UOB-TH is highly rated for it's credit viability and reserves. I have no experience using UOB yet most Singapore based banks rate the highest globally. Please see the link:

https://www.uob.co.th/investor-en/credit-ratings/finance-results-credit-ratings.page

Edited January 21, 2023 by RayOday

[CM Dad]

14 hours ago, liddelljohn said:

The safest Thai bank is probably SCB as Royal Family are major shareholders  many wealthy and HISO thais  prefer it as its unlikey to go bust

 

GSB  and Agricultural banks are OK but very limited services as they are aimed primarily at Thais and farmers

 

Over the  years never seen problems with SCB or Krungsri Banks but seen lots of problems  people have had with Kasikorn {thai farmers]   and also bangkok bank .

I have both a Bangkok Bank account and a Krungsri account.  I have used both banks for several decades and had no problems with either of them.

[nigelforbes]

21 minutes ago, jippytum said:

 

Mind you if there was a run on the banks i would expect the GSB to remove the guarantee for foreigners  .Like most Thai institutions laws and small print can be changed to the detriment of foreigners in a heartbeat.

What nonsense you speak!

[KhunBENQ]

I doubt that the garantuee is worth a penny if one of the big 5 (6) private banks goes bankrupt.

 

Bangkok Bank
Siam Commercial Bank (SCB)

KrungThai
Kasikornbank ("K-bank, Thai Farmers Bank")
Bank of Ayudhya ("Krungsri")
ttb (merger of TMB + Thanachart)

 

Bangkok Bank, the biggest (the "Chinese"). Currently shrinking their network and employee base heavily.

 

SCB is "Royal".

 

KrungThai is THE "state" bank, bank teller of the Revenue Department, paying all government employees, paying "old age" pensions etc. etc.  Not very foreigner friendly from what I read. Often very crowded branches.

 

Kasikorn, very modern, "fancy". Also heavy shrinking expenses for branch network, employees, ATMs etc.

 

ttb former TMB, M for military. I don't how much military they are. Seem modern but don't know how foreigner friendly they are. E.g. in Khon Kaen they post on the door "no currency exchange", kind of exceptional.

 

I have accounts with Bangkok Bank, SCB and Kasikorn.

No problems worth mentioning except broken machines, the antiquated bank book system.

Edited January 21, 2023 by KhunBENQ

[KhunBENQ]

Some of my comments are simply based on local observations.

But what can I think if Bangkok Bank withdraws from shopping centers, biggest bank and no ATM, no micro branch at the mall? All ATMs in the region shabby old aged. Often defunct.

At the same time SCB fancy modern machines.

 

[KhunBENQ]

15 hours ago, ubonr1971 said:

Can I assume that the 2 safest banks are the actual govt banks: GSB (govt savings bank) and the Agriculture bank? Surely it would be safe to hold more than 1 million in either of these 2?

You can try to open an account with them.

The agricultural bank (BAAC) up here? No thanks, branch often completely crowded, mass gatherings waiting under gazebos on the premises. And branch network probably quite thin nationwide?

Edited January 21, 2023 by KhunBENQ

[hotchilli]

16 hours ago, ubonr1971 said:

Can I assume that the 2 safest banks are the actual govt banks: GSB (govt savings bank) and the Agriculture bank? Surely it would be safe to hold more than 1 million in either of these 2?

I've been with SCB for 15 years, never had a problem, excellent service.

[nigelforbes]

Bangkok Bangkok Bank,,,,Systemically important is the word I was groping for. ????

[Photoguy21]

15 hours ago, proton said:

I can just imagine getting that back! still waiting for the government money back promise on the car insurance from a year ago which went bust. The compensation money will all get used up in a few days and most will get nothing, same with the car insurance 'protection'

You would get it back I am sure. You may wait 50 years to get it but you would get it.

[Foxx]

2 hours ago, CM Dad said:

I have both a Bangkok Bank account and a Krungsri account.  I have used both banks for several decades and had no problems with either of them.

Of course, banks only go bankrupt once.  Maybe you've just been lucky.

[Foxx]

2 hours ago, jippytum said:

The GSB  is the only bank in Thailand to guarantee 100 %  your deposit

Perhaps you could share your source for that information?

My understanding is that there is an "assumption" that government-owned banks will be bailed out by the government in the event of crisis.  However, it doesn't amount to a "guarantee".

 

Incidentally a bank can't "100% guarantee your deposit".  If it goes bankrupt, your deposit goes with it.  A third party guarantor is needed.

 

Edited January 21, 2023 by Foxx

[Liverpool Lou]

17 hours ago, ubonr1971 said:

Its my understanding that theres a 1 mill baht govt guarantee on deposits in any Thai bank??

 

Can I assume that the 2 safest banks are the actual govt banks: GSB (govt savings bank) and the Agriculture bank?

GSB offers 100% deposit protection.  I believe that the BAAC may fall into the same category.

[Liverpool Lou]

17 hours ago, Gaccha said:

All baht deposits in all Thai banks are protected up to 1 million baht by the Deposit Protection Agency Act. 

Except for those banks/institutions that are not subject to the DPA Act.

[Liverpool Lou]

17 hours ago, proton said:

I can just imagine getting that back! still waiting for the government money back promise on the car insurance from a year ago which went bust. The compensation money will all get used up in a few days and most will get nothing, same with the car insurance 'protection'

Gawd...

[Liverpool Lou]

17 hours ago, liddelljohn said:

The safest Thai bank is probably SCB as Royal Family are major shareholders 

"S&P Global Ratings has lowered its ratings on  Siam Commercial Bank (SCB) and  Kasikornbank (KBank) to 'BBB' from 'BBB+', and on  Krungthai Bank (KTB) and  TMBThanachart Bank (TTB) to 'BBB-' from 'BBB', reflecting its view that systemic risks have increased for banks operating in Thailand. 

At the same time, we affirmed our 'BBB+' ratings on  Bangkok Bank and  Bank of Ayudhya (BAY). We have revised down the stand-alone credit profiles of all six banks by one notch. The outlooks on all the banks are stable". 

[Liverpool Lou]

17 hours ago, liddelljohn said:

The safest Thai bank is probably SCB as Royal Family are major shareholders  many wealthy and HISO thais  prefer it as its unlikey to go bust

Banks' security and ratings are not dependent on who the shareholders are.

Edited January 21, 2023 by Liverpool Lou

[Liverpool Lou]

7 hours ago, Celsius said:

And if one of the insured banks would fail that would mean the baht would nosedive. The 1 million baht insurance would be meaningless.

Nonsense, the banks do not pay the DPA protected amounts, the government's DPA does.

[Liverpool Lou]

7 hours ago, Celsius said:

17 hours ago, liddelljohn said:

The safest Thai bank is probably SCB as Royal Family are major shareholders  many wealthy and HISO thais  prefer it as its unlikey to go bust

 

Exactly.

Er, no, not "exactly".  He's right that the King is the major shareholder but that bank's S&P rating has recently been reduced.  To to below BBL and Krungsri, for instance