Deposit Protection Act Comes Into Effect Today

[webfact]

Deposit Protection Act Comes into Effect Today

Today marks a big day of change for Thai bank clients as the Deposit Protection Act comes into effect today.

Starting today, the Deposit Protection Act will guarantee all deposits under 50 million baht for all clients of bank accounts at one financial institution.

All depositors eligible for the scheme will receive total protection for one year.

The protection will later be reduced to one million baht for each depositor's account at one financial institution.

Deposit Protection Agency Director Singha Nikornpun said the plan to reduce the range of protection to one million baht is beneficial for all bank clients, as clients with deposits of less than one million baht account for more than 98.5 percent of all bank clients.

He said commercial banks have 78 million savings accounts with deposits of less than one million baht, a value of 2.2 trillion baht.

He said all depositors can be confident that they will be protected against any sort of financial crisis.

Thai Bankers' Association Secretary-General Tawawtchai Yongkitikul said financial institutions in Thailand are far from reaching bankruptcy, as the country has a strong economic foundation and has good risk management.

He believes the Thai economy is on an up trend.

He added that the Deposit Protection Act covers all types of accounts including current accounts, saving accounts, fixed accounts, and certificates of deposits, which include all foreign deposits in the Thai baht as well.

He said the scheme will only protect those residing in Thailand.

Moreover, the scheme will not protect bonds, bills of exchange, or promissory notes.

-- Tan Network 2011-08-11

[12DrinkMore]

which include all foreign deposits in the Thai baht as well

Wonder what that means?

[george]

If you have a Non-resident account (basically an account with no interest) it will not be covered.

[Falcon]

Not really a great deal is it for anyone with over 1 million bahtn it means that to be covered you would have to have multiple accounts each holding 1 million. But then again, this is Thailand so there would probably be some excuse as to why money wasn't covered by the scheme should any problem occur, especially on a foreigners account, resident or not. Time will tell.

[givenall]

which include all foreign deposits in the Thai baht as well

Wonder what that means?

It means if you have foreign currency account like $$account with Thai bank then you are not covered