Thai Bankers Association tells depositors not to rush to withdraw money: Rice pledging

[TallGuyJohninBKK]

I don't know what would happen under DPA, since it hasn't happened since it's creation.

But if you read the DPA website, there's no mention I can find about their process involving acquiring banks, or the DPA paying off the failed bank's debts to give the new bank a clear slate -- as occurs in the U.S.

The DPA process only appears to talk about refunding deposits to account holders in the event of a bank failure. And presumably, here in Thailand, another bank would only get involved IF the government first covered any losses from the failed bank.

[chiang mai]

OK we're going round in circles here somewhat, I regard FDIC as a part of the Fed and DPA as a part of BOT. BOT acted favorably post 1997 to manage the merger of financial institutions and to manage the ensuing debt, there's no reason to believe that DPA, aka BOT, would not do the same thing again in the future. In that context DPA does have a track record in that it is effectively BOT. However, The fact that the DPA website doesn't provide all the information a westerner might want to see about the end to end bank failure process is hardly adequate cause to raise suspicion about their capability, this is after all Thailand and not Kansas!

[TallGuyJohninBKK]

Yes, Thailand prior to DPA has a track record of managing bank failures, alright: See below:

First hand experience in 1997/1998: had money here frozen. Government passed the amount owed to their government bank KTB.

KTB had my funds on their books though I had never opened an account with that bank. I could NOT remove any money for about 3 years. Yes it was frozen, but I did get it ALL back, even had small amount of interest. The worries of it all was disheartening.

[chiang mai]

The nervousness of some posters is coming through loud and clear and for such people I say yes, withdraw your funds and put them overseas so that you can sleep at night - that same nervousness however also makes me wonder what those people are doing here in Thailand in the first place and I wonder if they are truly suited to expat life in Asia.

For my part I am spread across several banks in Thailand, CIMB (Malaysia), UOB (Singapore) and BAY (Thailand/Japan), I sleep very well despite having 50% of my cash assets in those banks.

[searcher22]

Even with Thai DPA protection, a worst-case scenario would see the depositor getting back a baht that's been devalued 30-40%. So you get all your money back, but it's worth much less.

[FiftyTwo]

The nervousness of some posters is coming through loud and clear and for such people I say yes, withdraw your funds and put them overseas so that you can sleep at night - that same nervousness however also makes me wonder what those people are doing here in Thailand in the first place and I wonder if they are truly suited to expat life in Asia.

For my part I am spread across several banks in Thailand, CIMB (Malaysia), UOB (Singapore) and BAY (Thailand/Japan), I sleep very well despite having 50% of my cash assets in those banks.

I've reduced my stake to 1/2 million.

Just enough for my marriage extension and a couple of months expenses.

Looking to make money when it all goes tits up, and the baht crashes.

Wonder if immigration will accept an IOU from the DPA for my visa extensions?

Edited February 7, 2014 by FiftyTwo

[Soutpeel]

The nervousness of some posters is coming through loud and clear and for such people I say yes, withdraw your funds and put them overseas so that you can sleep at night - that same nervousness however also makes me wonder what those people are doing here in Thailand in the first place and I wonder if they are truly suited to expat life in Asia.

For my part I am spread across several banks in Thailand, CIMB (Malaysia), UOB (Singapore) and BAY (Thailand/Japan), I sleep very well despite having 50% of my cash assets in those banks.

I've reduced my stake to 1/2 million.

Just enough for my marriage extension and a couple of months expenses.

Looking to make money when it all goes tits up, and the baht crashes.

Wonder if immigration will accept an IOU from the DPA for my visa extensions?

If you offer to buy a couple of tons of rice from the PTP sure they will extend your visa extension for another year

[Soutpeel]

The nervousness of some posters is coming through loud and clear and for such people I say yes, withdraw your funds and put them overseas so that you can sleep at night - that same nervousness however also makes me wonder what those people are doing here in Thailand in the first place and I wonder if they are truly suited to expat life in Asia.

For my part I am spread across several banks in Thailand, CIMB (Malaysia), UOB (Singapore) and BAY (Thailand/Japan), I sleep very well despite having 50% of my cash assets in those banks.

I sleep very well as an expat in Thailand as my big Piggie bank is in Singapore and only have a beer money account in thailand always did it this way as even when I first came here, you could see Thailand was never going to be a "stable" country

[Showbags]

Even with Thai DPA protection, a worst-case scenario would see the depositor getting back a baht that's been devalued 30-40%. So you get all your money back, but it's worth much less.

A bowl of somtum will always be worth 30baht.

[CaptainPeacock]

I sleep very well as an expat in Thailand as my big Piggie bank is in Singapore and only have a beer money account in thailand always did it this way as even when I first came here, you could see Thailand was never going to be a "stable" country

With currents events here I was looking to relocate my stash there(Singapore)...however just came across this:

http://www.forbes.com/sites/jessecolombo/2014/01/13/why-singapores-economy-is-heading-for-an-iceland-style-meltdown/2/

Is anywhere SAFE?

[Crushdepth]

Withdraw from Bangkok Bank and other Banks that do not participate in the loan and deposit them in participating banks.

Can you name some participating banks?

[petedk]

I am one of those who has most of his life savings invested in Thai banks.

Maybe time to withdraw and buy gold or other commodity.

Edited February 17, 2014 by petedk

[CaptainPeacock]

DOH...!

Just found the story right here on this forum!

http://www.thaivisa.com/forum/topic/704977-thailand-gsb-baac-unions-protest-loan-to-pay-rice-farmers/

[metisdead]

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[personchester]

I am one of those who has most of his life savings invested in Thai banks.

Maybe time to withdraw and buy gold or other commodity.

No, don't panic, Thai banks will not go down hill financially, the banks are in a stable position due to a well organised banking system.

Moreover the two opposing parties do not want Thailand and its Banks to collapse financially, thus the farmers payment will be sorted in such a manner that financial state and bank problems will not arise.