Unusual money withdrawal of cash from GSB

[Lite Beer]

Unusual money withdrawal of cash from GSB

BANGKOK: -- Unusual withdrawals of cash from the Government Savings Bank in Bangkok and the provinces were reported yesterday and today after the bank president said it has provided interbank loans to the Ban for Agriculture and Agricultural Cooperatives to shore up its liquidity.

In Trang province today, customers of the Government Savings Bank rushed to the bank branch to pull their money out of the bank after learning that the bank has extended loans to the Bank for Agriculture and Agricultural Cooperatives to support the rice-pledging scheme of the government.

Thai News Agency in Trang reported that within one hour after the opening of the bank, more than 10 million baht in cash were drawn out by customers.

Elsewhere in Bangkok’s GSB bank Paradise Park branch, there was also unusual withdrawals by bank customers yesterday with a total of 58 million baht in cash was withdrawn unusually from 80 accounts.

Bank staff said customers cited two reasons in the withdrawals. First is the extension of loans to support the rice-pledging scheme, and second is lower rate than other commercial banks.

There were altogether 279 withdrawals, but 80 were described as unusual withdrawals, the bank staff said.

But at the same day there were 171 deposits, with a total amount of 51.6 million baht.

GSB union yesterday called on all employees to wear black today to protest the interbank loan extension by the bank president.

In a statement issued yesterday, it tells the bank executive to halt the loan extension immediately reasoning the BAAC has sufficient liquidity, and also to recall all the loans it has extended back from the BAAC.

It added that any loan extension to support the rice scheme could wreck customers’ confidence and could inflict damage to the bank.

Source: http://englishnews.thaipbs.or.th/unusual-money-withdrawal-cash-gsb/?utm_source=rss&utm_medium=rss&utm_campaign=unusual-money-withdrawal-cash-gsb

-- Thai PBS 2014-02-17

[Spartakos]

Not unusual at all. People don't want their money to disappear into the the shin clan pockets via the rice scam.

[bkkjames]

10 million in Phuket this morning I believe I read in the papers i think it was.

yep, a run on the bank will happen to what degree who knows.

[TVGerry]

Hahaha bank run! GSB deserves it! You're lending money to a corrupt government and you'll probably never get repaid.

[Sayonarax]

brb off to withdraw some money..

[kikoman]

What run? almost as much money was deposited from what was withdrawn, as 80 withdrawal were fairly large as the rich playing with their money but the little man made up for the money the rich withdrew.

Why would the government want that dirty money in their bank anyway.

Cheers

[Valentine]

What run? almost as much money was deposited from what was withdrawn, as 80 withdrawal were fairly large as the rich playing with their money but the little man made up for the money the rich withdrew.

Why would the government want that dirty money in their bank anyway.

Cheers

It is not often you make a sensible post is it?

[david555]

-58 wthdraw and +51,6 deposit = 6,4 real witdraw

[GeorgeO]

Hahaha bank run! GSB deserves it! You're lending money to a corrupt government and you'll probably never get repaid.

I commented several weeks ago that the first bank to agree to extend loans to help this rabble to pay their debts to the rice farmers would see a run on its assets. I think its a good thing, because it will send a clear message to all of the commercial banks not to get involved.

GSB has no option, because they are essentially still under the control of this 'caretaker' puppet government, but that's not going to stop their customers from bringing the bank to its knees. And I disagree with those who argue that this could have a major knock-on effect on other banks; those banks that refuse to be involved in such lunacy will remain unaffected.

I just wonder what it will take for them decide to drop this ridiculous scheme...!!?? Of course, they have to argue that it must keep going, ostensibly because its for the good of the farmers (yeah, right) but actually because once they drop it, the auditors will move in and discover the real damage that they have caused to the economy.

Indeed, given the apparent run on GSB, it would seem that when Thaksin is finally finished with this country, and the last remnants of the Shin clan have left Thai politics altogether, there will be no sector of the economy that will have remained untouched by their ineptitude.

[mrtoad]

If I had monies in that bank I'd be withdrawing it as well. Not a good move by the bank.

Edited February 17, 2014 by mrtoad

[EyesWideOpen]

Actually this will a benefit to the banks that refuse to take part in this lunacy.

All the money pulled out of GSB will go into their banks....

[GeorgeO]

What run? almost as much money was deposited from what was withdrawn, as 80 withdrawal were fairly large as the rich playing with their money but the little man made up for the money the rich withdrew.

Why would the government want that dirty money in their bank anyway.

Cheers

Not sure where you get your 'dirty money' comment from as many of the PTP ministers are themselves "unusually" rich. Is that possibly "dirty money"?

Anyway, the run on the bank is a self-fulfilling prophecy. Simply hearing news of large withdrawals from the bank which holds your personal assets would naturally lead you to consider opening up an account at another bank and transferring it there.

I think we're only seeing the tip of the iceberg at the moment. By the end of the week, the bank will be running to Yingluck telling her it has to stop...!

[Chicog]

Net withdrawal of 6 million baht. Wow that's got to hurt.

Sent from my GT-I9505 using Thaivisa Connect Thailand mobile app

[Why ask]

What run? almost as much money was deposited from what was withdrawn, as 80 withdrawal were fairly large as the rich playing with their money but the little man made up for the money the rich withdrew.

Why would the government want that dirty money in their bank anyway.

Cheers

Not sure where you get your 'dirty money' comment from as many of the PTP ministers are themselves "unusually" rich. Is that possibly "dirty money"?

Anyway, the run on the bank is a self-fulfilling prophecy. Simply hearing news of large withdrawals from the bank which holds your personal assets would naturally lead you to consider opening up an account at another bank and transferring it there.

I think we're only seeing the tip of the iceberg at the moment. By the end of the week, the bank will be running to Yingluck telling her it has to stop...!

I can't agree more. What I hope is it doesn't become a systemic bank crisis. One a ghost is seen in a village, everybody goes to see it... and gossip carries far here, even if it carries little merit. Everybody follows suit in hysterical fashion... same as with a 'STAR'.. ..look he did this... we must too!

I doubt the likes of Kasikorn or BKK Banks are particularly worried, they have great assets and not too much, in comparison, out on loans. It could become worrisome though.

[Valentine]

Hahaha bank run! GSB deserves it! You're lending money to a corrupt government and you'll probably never get repaid.

I commented several weeks ago that the first bank to agree to extend loans to help this rabble to pay their debts to the rice farmers would see a run on its assets. I think its a good thing, because it will send a clear message to all of the commercial banks not to get involved.

GSB has no option, because they are essentially still under the control of this 'caretaker' puppet government, but that's not going to stop their customers from bringing the bank to its knees. And I disagree with those who argue that this could have a major knock-on effect on other banks; those banks that refuse to be involved in such lunacy will remain unaffected.

I just wonder what it will take for them decide to drop this ridiculous scheme...!!?? Of course, they have to argue that it must keep going, ostensibly because its for the good of the farmers (yeah, right) but actually because once they drop it, the auditors will move in and discover the real damage that they have caused to the economy.

Indeed, given the apparent run on GSB, it would seem that when Thaksin is finally finished with this country, and the last remnants of the Shin clan have left Thai politics altogether, there will be no sector of the economy that will have remained untouched by their ineptitude.

Ineptitude might be too kind a word as criminal charges are looming so it may well turn out to be a coordinated plan to rob the country blind & buy up a lot of cheap land at the same time.

[bigbamboo]

What run? almost as much money was deposited from what was withdrawn, as 80 withdrawal were fairly large as the rich playing with their money but the little man made up for the money the rich withdrew.

Why would the government want that dirty money in their bank anyway.

Cheers

It is not often you make a sensible post is it?

As Diana Ross would say, 'I'm still waiting.'

[telecom]

What run? almost as much money was deposited from what was withdrawn, as 80 withdrawal were fairly large as the rich playing with their money but the little man made up for the money the rich withdrew.

Why would the government want that dirty money in their bank anyway.

Cheers

Just because you choose to believe this bullshit doesn't make it true. Did you expect the GSB bank facing a run on its assets would issue a statement telling the exact scale of it? Would that help their situation? No, it would make their situation worse.

Almost everyone in the country with internet, or TV will here about this run on the banks and will follow suit if they have money in the GSB. It only takes 10% of the deposits to be removed and the GSB will have to close its doors.

Now for some facts.

Sister in law has 80,000 baht in there. She had no intention of withdrawing her money, but once she saw the pictures of the queues and also some people at her workplace asking for an hour off work to withdraw their money, she decided to do the same... gets to the bank and is given a cashiers check saying that all the cash money was gone.

At least she can deposit that check into her KBank account where it is safe.

[webfact]

Bank employees want safety, farmers want money
By Digital Content



BANGKOK, Feb 17 – Reservations by employees of the Bank of Agriculture and Agricultural Cooperatives (BAAC) on interbank borrowing for rice payments were today criticised by farmers who wanted money for the rice they sold.

In a demand to the BAAC management, the labour union said the Finance Ministry must act as guarantor for the Bt5 billion loans granted by the Government Savings Bank (GSB) to BAAC.

BAAC needs the money to pay farmers who have yet to be paid for the rice they sold under the government’s subsidy scheme.

The government has to pay Bt130 billion to farmer nationwide for rice in the 2013/2014 crop. Payments have been delayed since September.

The BAAC labour union also called on the management to avoid using people’s deposits to pay farmers and the Commerce Ministry to urgently sell rice in its stocks to get money to pay farmers.

A group of farmers laid a wreath in front of the BAAC head office to protest the labour union for objecting to the payments and gave moral support to the bank management.

Meanwhile, Apaporn Ratanadej, GSB district director in Trang province, said people withdrew more than Bt10 million from various GSB branches in the South in just an hour this morning.

The GSB district office is in charge of branches from Trang to Satun provinces.

She said bank employees have explained to customers who said they preferred to deposit with other banks.

Customers who withdrew big amounts of money were asked to return for cash tomorrow, she said.

Trang people also swarmed the branch offices of BAAC and Krung Thai Bank to withdraw money. (MCOT online news)


-- TNA 2014-02-17

[englishoak]

hehe i believe what I see mightyatom sorry i mean telecom

2:30 pm just went past the same GSB i did this morning still no one outside and this time looked in the door ... 15 in the bank.... no one seems to be hitting the panic button just yet in the branch i passed twice today.

panic all you want but so far there is nothing major going on, no internet breaking news on other websites of other feeds i get ... seems to me its Trang market gossip thats got them all riled up .. no idea why they are freaking on KTB maybe its just the rates in these banks.

I notice its now 10m over a number of branches not one too which isnt anything special either.

Beginning to sound like just a scaremongering non event item in the south to me. Lets hope so

[webfact]

GSB bank chief admits unusual cash withdrawals today



BANGKOK: -- Government Savings Bank (GSB) director Worawit Chailimpamontri admitted of unusual cash withdrawals by customers today after its announcement of interbank loan extension to the Bank for Agriculture and Agricultural Cooperatives (BAAC).

He said he was informed of unusual withdrawals of cash from all bank branches today and was believed to come from the loan extension.

But he said that the bank has tried to explain to misunderstood customers that the loan it provided to BAAC was not to support the rice pledging scheme, and the bank would never involve directly in the rice pledging scheme.

He made clear that the latest loan extension through interbank channel was a normal practice which it had used over a decade and never had a problem.

He said that the extension to BAAC is a short-term loan not exceeding 30 days, while reaffirming that the 5 billion baht loan was to strengthen the BAAC’s liquidity same as to other banks.

However, he said that the extension could be revised if there is a bank rush to withdraw money from the bank, adding the bank could still handle the situation while the rush would be short-lived or just 1-2 days.

Source: http://englishnews.thaipbs.or.th/gsb-bank-chief-admits-unusual-cash-withdrawals-today/


-- Thai PBS 2014-02-17

[icommunity]

What run? almost as much money was deposited from what was withdrawn, as 80 withdrawal were fairly large as the rich playing with their money but the little man made up for the money the rich withdrew.

Why would the government want that dirty money in their bank anyway.

Cheers

Not sure where you get your 'dirty money' comment from as many of the PTP ministers are themselves "unusually" rich. Is that possibly "dirty money"?

Anyway, the run on the bank is a self-fulfilling prophecy. Simply hearing news of large withdrawals from the bank which holds your personal assets would naturally lead you to consider opening up an account at another bank and transferring it there.

I think we're only seeing the tip of the iceberg at the moment. By the end of the week, the bank will be running to Yingluck telling her it has to stop...!

I am interested to know the PTP ministers who are 'unusually' rich.

Send from my Mobile

[LazyCat]

This is crazy . Finally one bank agreed to help the government to pay to the farmers so that they will not starve or commit suicide and what do pi nong prachachen do ??? They do everything possible to make sure the bank will regret this ...

[Soutpeel]

He said that the extension to BAAC is a short-term loan not exceeding 30 days,

So what happens in 30 days, if the money is not paid back ?

[webfact]

GOVERNMENT SAVINGS BANK
GSB in south packed with nervous customers over rice-pledging scheme

BANGKOK: -- Branches of the Government Saving Bank in two southern provinces were crowded on Monday with people seeking to verify reports that the bank will lend money to the government to repay rice farmers in debt under rice-pledging scheme.

Some of them were seen withdrawing their savings out of fear their money will be used to help pay the debts to the farmers.

Their officials wore black in protest at the bank's decision to be part of the government’s struggling efforts to repay the Bt130 billion its owes to the rice farmers.

In Satun, the bank's administration hung a banner on the front which read, "The bank will not use customers’ savings to repay the rice-pledging scheme".

Pun Sripat, 48, said that she monitored news reports about the issue but was not sure if the reports were accurate. However, she said the report was later confirmed so she, along with relatives and neighbours came to the bank to withdraw their savings.

However, some customers have confidence that the bank will not use their savings to repay the debts. Some of them were seen depositing money into their accounts.

The bank’s manager Sompob Panthong meanwhile said the bank has earlier assured customers that the bank would not use their savings. "The customers understand the situation," he said.

The bank’s Krabi branch saw many customers withdrew the money from their accounts out of fear that the bank will use their savings to help fund the scheme.

Chatchawan Ritthirueng, 56, said he and his wife believe that the bank would give their savings to help the government repay the debts. "So we came here to withdraw most of the money from the account and leave just Bt500.

The branch’s manager Patcharee Narawisut said that many customers today came to withdraw their savings. "All I can do is to tell them not to be panic. I did not know yet the total amount of money withdrawn. I already informed the provincial bank’s administration," she said.

The numbers of people withdrawing money today are relatively higher than before, she said.


-- The Nation 2014-02-17

[Why ask]

He said that the extension to BAAC is a short-term loan not exceeding 30 days,

So what happens in 30 days, if the money is not paid back ?

He also said, quote "the bank has tried to explain to misunderstood customers that the loan it provided to BAAC was not to support the rice pledging scheme".

Ooops.

[geodesic]

He said that the extension to BAAC is a short-term loan not exceeding 30 days,

So what happens in 30 days, if the money is not paid back ?

You know the answer to that, and so does Worawit Chailimpamontri. Normal practice is the banks will roll it over. The only thing a short term loan does vs. a long term loan is allow them to play with the interest rate over time. GSB can always go to another bank to get extra "liquidity", as long as the interest rate they get from the BAAC is high enough to justify it. This loan could go on indefinitely if they want,a nd I'm sure that is the plan. Eventually, the Finance Ministry will pay the BAAC, and the loan will be closed. The 30 day figure is meaningless as long as GSB wants it to be.

I don't mind when people have an opinion different than mine. But when people treat me with contempt that bothers me. Who does Worawit Chailimpamontri think he is spouting ridiculous nonsense like "misunderstood customers". The customers know exactly what is going on. And if he was so ignorant that he didn't know that money would be used for the failed rice scheme, then he isn't smart enough to be director of a bank.

He should either be honest and admit that he intends to fund the rice scheme with GSB money, or step down. Right now he just sounds ridiculous.

[ramrod711]

What run? almost as much money was deposited from what was withdrawn, as 80 withdrawal were fairly large as the rich playing with their money but the little man made up for the money the rich withdrew.

Why would the government want that dirty money in their bank anyway.

Cheers

What on earth makes you think it's the little man? The first thing i thought was Yingluck transfered cash so that they can get more loans. The "little man"is broke, thanks to this governments incompetetence. I'm being kind, assuming it was incompetence, the reality may be deliberate evil intent.

[rreddin]

This is crazy . Finally one bank agreed to help the government to pay to the farmers so that they will not starve or commit suicide and what do pi nong prachachen do ??? They do everything possible to make sure the bank will regret this ...

Now the farmers can be in no doubt that the people who work at the Bank of Agriculture and Agricultural Co-operatives have no interest in their welfare.

[pedro01]

My wife went to The Mall Bang Kapi today. There were 60 people ahead of her in the queue. Never seen more than a handful in there before

Sent from my iPhone using Thaivisa Connect Thailand

[uty6543]

What run? almost as much money was deposited from what was withdrawn, as 80 withdrawal were fairly large as the rich playing with their money but the little man made up for the money the rich withdrew.

Why would the government want that dirty money in their bank anyway.

Cheers

Not sure where you get your 'dirty money' comment from as many of the PTP ministers are themselves "unusually" rich. Is that possibly "dirty money"?

Anyway, the run on the bank is a self-fulfilling prophecy. Simply hearing news of large withdrawals from the bank which holds your personal assets would naturally lead you to consider opening up an account at another bank and transferring it there.

I think we're only seeing the tip of the iceberg at the moment. By the end of the week, the bank will be running to Yingluck telling her it has to stop...!

I am interested to know the PTP ministers who are 'unusually' rich.

Its not the money they declare they have that is interesting. Its the money that they have hidden either under the bed or in bank accounts abroad that needs to be traced.