Have money in the bank in Thailand?

[recycler]

Considering what's going on in Europe these days, I feel more confident in keeping money in Thailand. Deciding about the safety of your money should be based on reality, not some long standing myth about the security of US and European investment institutions.

Europe strikes deal to push cost of bank failure on investors

BY JOHN O'DONNELL AND ROBIN EMMOTT

BRUSSELS Thu Jun 27, 2013 5:40am EDT

(Reuters) - The European Union agreed on Thursday to force investors and wealthy savers to share the costs of future bank failures, moving closer to drawing a line under years of taxpayer-funded bailouts that have prompted public outrage.

The rules break a taboo in Europe that savers should never lose their deposits, although countries will have some flexibility to decide when and how to impose losses on a failing bank's creditors.

After seven hours of late-night talks, finance ministers from the bloc's 27 countries emerged with a blueprint to close or salvagebanks in trouble. The plan stipulates that shareholders, bondholders and depositors with more than 100,000 euros ($132,000) should share the burden of saving a bank.

The deal is a boost for EU leaders, who meet later on Thursday in Brussels, and can show that they are finally getting to grips with the financial crisis that began in mid-2007 with the near collapse of Germany's IKB.

http://www.reuters.com/article/2013/06/27/us-eu-banks-idUSBRE95Q02L20130627

The OP is from Norway, they are not in the EU and probably the richest oil and gas country in the world.

The banks in Norway will probably be the last in the world to collapse.

I wouldn't worry too much about the Thai economy to collapse, there is still a lot produced here and many more plants under construction and as long as they keep producing woman it should be all right here. On the other hand if you can spread your risk and have the bulk of your money in Norway that would probably be a good option apart from tax issues that I can't judge.

[pianoman]

I really don't think that money / Thai Baht on deposit within Thailand will be in danger, unless you consider the declining value of the Baht against other currancies a problem... For most of us a decline in the value of the Thai Baht would actually be a positive as our Baht would be worth far more than when we brought it over...

I have said for the past few years that Thailand is setting it's self up for another Crash as in 1997... Borrowing far too much money and building far too much based upon the cheap interest rates offered by Thai Banks... Now that a lot of those Off Shore investors are pulling their money back, many Thai individuals and companies will find it hard to sell / rent all of those Over Built Houses and Buildings...

Pianoman

[Sydebolle]

Be reasonable. If the rice scheme turns out to be a scam then it will affect the governmental money coffers as they promised this rubbish in the first place.
Unless the government nationalises commercial banks then your money will be safe - and hence I personally do not see anything to worry about.
The economy will certainly take a big hit on all that rannygazoo, the currency will dive further but as Thailand is still on the food-exporting-side of the economy it will eventually recover as the food producers will be the winners in the 21st century. Having said that, this does not support the rice scam but, as said, this is being dealt with on a different level.

More worrisome would be if I would have an Euro account in Athens ………

[SAFC1973]

Thai bank should be ok but depends how severe this gets.... Personally I only keep a few k in LOS incase I need to leave in a hurry...

Sent from my iPhone using Thaivisa Connect Thailand

[chiang mai]

I really don't think that money / Thai Baht on deposit within Thailand will be in danger, unless you consider the declining value of the Baht against other currancies a problem... For most of us a decline in the value of the Thai Baht would actually be a positive as our Baht would be worth far more than when we brought it over...

I have said for the past few years that Thailand is setting it's self up for another Crash as in 1997... Borrowing far too much money and building far too much based upon the cheap interest rates offered by Thai Banks... Now that a lot of those Off Shore investors are pulling their money back, many Thai individuals and companies will find it hard to sell / rent all of those Over Built Houses and Buildings...

Pianoman

For most of us a decline in the value of the Thai Baht would actually be a positive as our Baht would be worth far more than when we brought it over...

That's an interesting concept, can you explain to me how that works, please.

[Palmeiras]

IMF Statement on Taxation

Press Release No. 13/427

November 5, 2013

In response to misreporting of an alleged proposal by the International Monetary Fund (IMF) on wealth taxes, Mr. Sanjeev Gupta, Acting Director of the IMF’s Fiscal Affairs Department, issued the following statement today:

“An analytical box in the recent edition of the Fiscal Monitor reviews a range of external discussions and experiences regarding a one-off capital levy. It also draws attention to the considerable downside risks of such a tax. It emphatically does not recommend a wealth tax.

“The analytical description of the issue in the Fiscal Monitor should not be misconstrued as an IMF policy proposal, which does not exist.”

[bitcoinbob]

yes you should be concerned banks have failed in thailand. when was the last bank failure in Norway. in 1997 a quite a few Thailand banks collapsed and were nationalize that is just 16 years ago. then thailand increased deposit insurance to 50 million baht per deposit per bank but as of august 2012 deposit insurance is down to 1 million baht per account. leave your money in norway wire it in as needed, remember more risk gets more reward ,they do not pay interest to foreign account holders but you get interest however small in norway. i think if things get bad in thailand they may go the way of cyprus domestic thai deposit holders 100% reimbursement till 1 million baht- foreign holders 30%+ haircut on their accounts . local tha'si happy at least that did not happen to me--- foreigns who are you going to complain too??? eat shit

[chiang mai]

yes you should be concerned banks have failed in thailand. when was the last bank failure in Norway. in 1997 a quite a few Thailand banks collapsed and were nationalize that is just 16 years ago. then thailand increased deposit insurance to 50 million baht per deposit per bank but as of august 2012 deposit insurance is down to 1 million baht per account. leave your money in norway wire it in as needed, remember more risk gets more reward ,they do not pay interest to foreign account holders but you get interest however small in norway. i think if things get bad in thailand they may go the way of cyprus domestic thai deposit holders 100% reimbursement till 1 million baht- foreign holders 30%+ haircut on their accounts . local tha'si happy at least that did not happen to me--- foreigns who are you going to complain too??? eat shit

Nonsense, the Deposit Protection scheme covers up to 50 mill until 2015 and up to 25 mill until 2016.

http://www.thaivisa.com/forum/topic/607556-50m-baht-thai-bank-deposit-ins-extended-to-2015/#entry5963228

[fvw53]

A good economy is where the people believe the economy is good.

A bad economy is where the people believe the economy is bad.

Sometimes an unexpected factor can flip the confidence...and the many unpaid and angry rice farmers could be that factor...and this much more than demonstrations by Suthep and his followers.

[GAZZPA]

Thailand is in a political mess for sure and despite what people say here it is not routine. Thailand may be a country that has fairly frequent military coups but there are other factors right now such as the rice pledging scheme, the problem with the rubber farmers and yesterday i saw a worrying post that someone else is now waiting for their tax rebate on the car buying scheme. So, it seems there is a cash problem and this can do nothing but harm confidence which is after all the one thing that can collapse a market very quickly. Coupled with the fact that Thai politicians tend to try and smooth over the cracks rather then tackle issues head on means it is going to be bumpy ride for a while.

However, despite all this as far as i am aware foreign investment and foreign businesses are not jumping ship yet. This for me will be the deciding factor that Thailand is heading for meltdown but it is still in growth if the figures are to be believed.

So, in summary I don't see the economy collapsing. A reduction in growth yes, but as soon as the political situation recovers Thailand will carry on with decent growth, it is also only around 25% in debt against GDP which is far less then many other countries. So, right now I wouldn't worry too much,, but if you see any serious warnings of major foreign investors pulling out time to think again..

[flyingdoc]

Not just Cyprus! Look at what happened in Iceland too!

Spread any savings between different banks! Thailand's long term prospects are good.

[Jack Mountain]

Google 'IMF' 'Wealth Tax'- and learn about the IMF paper released recently which is recommending that EU govts consider a 10% tax on all private bank accounts - a one off measure to pay off govts debts.

I think Thai banks are safer right now.

the lukewarm fart released is not an IMF paper but a paper released by two IMF employees. the IMF mentions explicitly that these kind of "working papers" are not identical with the views of the IMF.

moreover, the paper does not deal with the EU only but refers to a global solution. nobody with a minimum of common sense thinks this tax can be implemented.

"nobody with a minimum of common sense thinks this tax can be implemented."

That's what they were saying in Cyprus before, er, it happened. But i do admire your innocent view that governments would never do such a thing (apart from Cyprus it seems ;-)

Everybody in Cyprus got/kept the guaranteed sum (100.000?). So why should the taxpayer pay for those people, with 100.000+, who are willingly taking the risk to loose it??

[CharlieH]

Answer is simple really, dont keep all your eggs in one basket, and balance those baskets according to risk.

[marko kok prong]

yes you should be concerned banks have failed in thailand. when was the last bank failure in Norway. in 1997 a quite a few Thailand banks collapsed and were nationalize that is just 16 years ago. then thailand increased deposit insurance to 50 million baht per deposit per bank but as of august 2012 deposit insurance is down to 1 million baht per account. leave your money in norway wire it in as needed, remember more risk gets more reward ,they do not pay interest to foreign account holders but you get interest however small in norway. i think if things get bad in thailand they may go the way of cyprus domestic thai deposit holders 100% reimbursement till 1 million baht- foreign holders 30%+ haircut on their accounts . local tha'si happy at least that did not happen to me--- foreigns who are you going to complain too??? eat shit

i get interest on two accounts at krung thai bank,one at2.5% and one at3.3%

[dunque]

Google 'IMF' 'Wealth Tax'- and learn about the IMF paper released recently which is recommending that EU govts consider a 10% tax on all private bank accounts - a one off measure to pay off govts debts.

I think Thai banks are safer right now.

the lukewarm fart released is not an IMF paper but a paper released by two IMF employees. the IMF mentions explicitly that these kind of "working papers" are not identical with the views of the IMF.

moreover, the paper does not deal with the EU only but refers to a global solution. nobody with a minimum of common sense thinks this tax can be implemented.

Except for people who have held accounts in Cyprus

[bangkapi]

If there is an event that causes a banking collapse in Thailand, it will likely be a global thing.

I trust my money in Thai banks more than I do my money in USA accounts.

[YesWeCan]

I have one Thai company in my portfolio (Siam Cement) and it did very well through the last years, including the so called economical crisis. A devaluation of the Baht would be nice for us, yes? As long as tourists flow in the country will prosper at least in the hospitality sector.

Edited January 17, 2014 by YesWeCan

[khunPer]

I think it’s a good time to move the amount of money in one gotta need for this year in LOS, as exchange rate is favourable and a normal saving account interest better than in many Western countries. In Thai Banks your money is guarantied – as well as in many European countries, whatever it’s worth – up to certain amount, which is millions of bath at the moment and in few year one million, presumably enough for (us) plain farangs, and we can always have accounts in more than one bank. May even be worth to invest a bit in an under priced stock market, if you can afford the risk that will always be when investing in stocks – but never put all the money on one horse only if your are not a professional gambler.

If the OP has a huge fortune piled up in Thailand (only), then it may be wise to spread the risk.

[rotary]

The western economies, in several cases, are also failing if you have a look. When the baht went from 25 to over 50 in a few short days in 1997 the economy did not fail.

Edited January 17, 2014 by rotary

[rotary]

If there is an event that causes a banking collapse in Thailand, it will likely be a global thing.

I trust my money in Thai banks more than I do my money in USA accounts.

For good reason in my opinion, the USA economy is wrecked with the Nanny Welfare mentality but the government will not admit it

[chiang mai]

The western economies, in several cases, are also failing if you have a look. When the baht went from 25 to over 50 in a few short days in 1997 the economy did not fail.

Only because the the IMF safety net was in place, goodness, what's your definition of a failed economy!

[Bantex]

Never rush into anything regarding money ~ Sleep on it for a couple of nights, Then withdraw your money in small notes, stuff them into your mattress & sleep on it again.

[Naam]

Google 'IMF' 'Wealth Tax'- and learn about the IMF paper released recently which is recommending that EU govts consider a 10% tax on all private bank accounts - a one off measure to pay off govts debts.

I think Thai banks are safer right now.

the lukewarm fart released is not an IMF paper but a paper released by two IMF employees. the IMF mentions explicitly that these kind of "working papers" are not identical with the views of the IMF.

moreover, the paper does not deal with the EU only but refers to a global solution. nobody with a minimum of common sense thinks this tax can be implemented.

"nobody with a minimum of common sense thinks this tax can be implemented."

That's what they were saying in Cyprus before, er, it happened. But i do admire your innocent view that governments would never do such a thing (apart from Cyprus it seems ;-)

Cyprus was handled as it was basically always handled. if a bank goes bankrupt your cash, which is not guaranteed by a third party, is gone. all of it. period!

the only difference was that those in power acted to prevent a bankruptcy and the creditors with deposits above the guaranteed €100k did not lose all but only a part of their cash. they could have fared much worse and lose all.

note1: don't believe what the scaremongers and/or journàsslists write but conduct your own research, e.g. where the cash of depositors are booked in the balance sheet of a bank.

note2: i mentioned that the proposed tax cannot be implemented on a global scale. the cyprus case was neither global nor did nobody "say anything before it happened".

note3: my views are not at all innocent, au contraire. but i concentrate on facts and feasibility whereas you contradict your self by believing that it can happen on a global scale and at the same time posting "I think Thai banks are safer right now." are Thai banks located somewhere in outer space?

note4: the lesson "your cash (not guaranteed) is gone if..." is free of charge

[meatboy]

have a butchers at the profit report for these banks for 2013.

Bangkok bank up 13%.

scb. up 28%.

kasikorn b.up17%.

tmb.up355% no its not a slip up.

tisco up15%.

kiatnakin up30%.

land and house up31%.

only bank out of the 8 that published its 2013 results that showed a loss compared to 2012 was bay.-4%

so do we need to worry don't think so.

[chiang mai]

have a butchers at the profit report for these banks for 2013.

Bangkok bank up 13%.

scb. up 28%.

kasikorn b.up17%.

tmb.up355% no its not a slip up.

tisco up15%.

kiatnakin up30%.

land and house up31%.

only bank out of the 8 that published its 2013 results that showed a loss compared to 2012 was bay.-4%

so do we need to worry don't think so.

I think the loss by BAY resulted from merger and acquisition rather than any lending loss, they took over HSBC Thailand retail division and now in turn they are being taken over my Bank Mitsubishi as I recall..

[meatboy]

have a butchers at the profit report for these banks for 2013.

Bangkok bank up 13%.

scb. up 28%.

kasikorn b.up17%.

tmb.up355% no its not a slip up.

tisco up15%.

kiatnakin up30%.

land and house up31%.

only bank out of the 8 that published its 2013 results that showed a loss compared to 2012 was bay.-4%

so do we need to worry don't think so.

I think the loss by BAY resulted from merger and acquisition rather than any lending loss, they took over HSBC Thailand retail division and now in turn they are being taken over my Bank Mitsubishi as I recall..

I think some of these banks might be short changing us savers with profits that big,mind you it would be interesting to see the defaulting figures.

[chiang mai]

have a butchers at the profit report for these banks for 2013.

Bangkok bank up 13%.

scb. up 28%.

kasikorn b.up17%.

tmb.up355% no its not a slip up.

tisco up15%.

kiatnakin up30%.

land and house up31%.

only bank out of the 8 that published its 2013 results that showed a loss compared to 2012 was bay.-4%

so do we need to worry don't think so.

I think the loss by BAY resulted from merger and acquisition rather than any lending loss, they took over HSBC Thailand retail division and now in turn they are being taken over my Bank Mitsubishi as I recall..

I think some of these banks might be short changing us savers with profits that big,mind you it would be interesting to see the defaulting figures.

NPL's (non-performing loans) are under 3% across the board.

[ExpatJ]

Naam- I think you got confused- we were talking about European banks and Thai banks; not all banks globally.

Sent from my iPhone using ThaiVisa app

[k3nnyx]

There are ways to mitigate such risks with global banks or private banks.

If you open a HSBC premier account in thailand, you can open USD, EUR, AUD currency accounts of your choice and keep your funds in that currency.

For further security, HSBC can also open an account in any currency of your choice to be opened in a country of your choice, without you needing to leave thailand, just rock up with your passport, and you can further put your money there and access all of it from thailand.

I'm sure other privileged/private banks will offer the same (citigold, bank of Singapore, credit Suisse)

Best of luck mate.

Sent from my iPhone using Thaivisa Connect Thailand

[Naam]

Naam- I think you got confused- we were talking about European banks and Thai banks; not all banks globally.

Sent from my iPhone using ThaiVisa app

it's you dear Sir who got confused because you relied on the "sensational" information from ignorant and biased journàsslists instead of reading the 107 pages "Taxing Time" which was published oct13, 2013 and refers to global debt solutions neither limited to banks nor to the European Union.

to make homework easier for you just read the title "A One-Off Capital Levy?" and the subtitle "Taxing Our Way out of—or into?—Trouble" both with a question mark; starting page 49, end page 59.