Unusual money withdrawal of cash from GSB

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 almost as much money was deposited from what was withdrawn, as 80 withdrawal were fairly large as the rich playing with their money but the little man made up for the money the rich withdrew.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

u should visit a doctor!!

he hasn't been back since he posted that - apparently the lines at his branch were longer than he thought.

Probably been relieved of duty for the day with another taking up the reins.

[Estrada]

B15 Million taken out of Paradise Park Government Savings Bank by 80 people is only B187,500 average per account. Since the stock market was rocketed up this morning by 1.5%, I would not be surprised if it were more related to people like me transferring their money into equities especially as there were rumours of a cut in bank interest rates last night. I transferred B840,000 out of my account and placed it in the stock exchange. Hardly a run on the bank. B15Billion would be cause for concern not a paltry sum like this. Sounds like the PDRC propaganda machine trying to stir things up.

[bkkjames]

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 almost as much money was deposited from what was withdrawn, as 80 withdrawal were fairly large as the rich playing with their money but the little man made up for the money the rich withdrew.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

u should visit a doctor!!

he hasn't been back since he posted that - apparently the lines at his branch were longer than he thought.

Probably been relieved of duty for the day with another taking up the reins.

Pipkins should be along shortly I imagine.

[simple1]

Ooops....

President of the Bank of Agriculture and Agricultural Cooperatives (BAAC) Luck Wajananawat said late today that the bank would cease paying farmers with the inter bank loan and to return it to the Government Savings Bank (GSB).

http://www.thaivisa.com/forum/topic/705087-baac-halts-paying-farmers-with-its-5-billion-baht-inter-bank-loan/

Edited February 17, 2014 by simple1

[hotrod4098]

some B/S o this forum..

[Baerboxer]

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

GSB is a state enterprise which operates as a financial institute guaranteed by the government under the supervision of the Ministry of Finance. The only way they won't get "repaid" by the govt is if Thailand itself declares bankruptcy.

I hardly think that will happen, don't you think?

As someone without any financial nous, you should refrain from posting on matters on which you have zero knowledge.

I urge you also to refrain from posting seeing as you also have no financial nous.

This government borrowing is illegal. So it may well not be officially guaranteed.

It is also not guaranteed because the finance minister was unable to legally guarantee the loan. Instead he was forced to pen a 'letter of comfort' as some silly form of diluted guarantee.

The inter-bank lending is just a stupid tissue thin cover for pure 100% government borrowing..... illegal, and therefore not legally guaranteed.

Sigh. legal or illegal as a loan its a state bank, run by the state and that means if there was ever to be any loss for any loan given to the state by a state bank it would be incurred by A the state or B the state run bank... depositors of private savings would not be affected ... its a state loan by a state bank to the state and can only be the state or state run bank thats liable. .... not the personal and private customers and therefore they would be fully and legally covered upto the limit ( 50 m ) under the personal banking protection rules in the event of any catastrophe, and guess where the money and reparation would come from ? yes thats right the state or the state bank or ultimately if need be the bank of Thailand ... Get it ?

PTP have been told they can't borrow in their current caretaker capacity. Ignoring the morality or different views that's how it is. They are under pressure to pay the farmers something to try and buy more time. As usual, they try to find ways around the rules, not because of their high morality or concern for the farmers, but to defuse and buy time if possible.

They come up with a plan, "comfort letter' and secure a fraction of what they need, but that's better than nothing. No one knows how they will pay this loan back or meet future payments. And, some experts have commented that this attempt at circumventing the rules and what they've been told is illegal.

TiT and any future government could easily say that finances are much worse than envisaged, the county's broke, and that this process was illegal. Sorry, no repayments bad luck.

Unreasonable - ask the depositors in Cyprus. There were reports that many EU governments would now consider raiding depositors with savings in any bank, private or state if the need to, following Cyprus's wonderful example. Bet no politician ever suffers, looses salary and somehow manages to hang on to their savings, same as bankers.

The old "safe as a bank" and seeing banks as bastions of prudence and ethical morality are consigned to history.

Given this caretaker regime's track record and that of its previous incarnations for breaking promises, changing laws for self benefit, lies and increased corruption, would you want to put your trust and savings in their hands?

[scorecard]

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

?

[bkkdave1220]

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

is what it is.

Suthep told his people to take money out. they did, but not a lot.

He then told his friends in the media to report it, hoping that it would turn into a run. It didn't

forget arrest, he should hang for this or life imprisonment.

blatant try to scupper money to farmers,

[MoonShadow]

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.

Firstly you need to understand banking. Cash withdrawals are against deposits which are "liabilities" on a Bank's balance sheet not Assets. Banks' assets, apart from physical assets such as Buildings etc, are predominently loans....loans, and investment of any surplus funds, are what makes banks money and proits (always assuming the margins are priced for the risk and repaid!).

However I agree with the sentiment of your post

[khunken]

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

GSB is a state enterprise which operates as a financial institute guaranteed by the government under the supervision of the Ministry of Finance. The only way they won't get "repaid" by the govt is if Thailand itself declares bankruptcy.

I hardly think that will happen, don't you think?

As someone without any financial nous, you should refrain from posting on matters on which you have zero knowledge.

I urge you also to refrain from posting seeing as you also have no financial nous.

This government borrowing is illegal. So it may well not be officially guaranteed.

It is also not guaranteed because the finance minister was unable to legally guarantee the loan. Instead he was forced to pen a 'letter of comfort' as some silly form of diluted guarantee.

The inter-bank lending is just a stupid tissue thin cover for pure 100% government borrowing..... illegal, and therefore not legally guaranteed.

Sigh. legal or illegal as a loan its a state bank, run by the state and that means if there was ever to be any loss for any loan given to the state by a state bank it would be incurred by A the state or B the state run bank... depositors of private savings would not be affected ... its a state loan by a state bank to the state and can only be the state or state run bank thats liable. .... not the personal and private customers and therefore they would be fully and legally covered upto the limit ( 50 m ) under the personal banking protection rules in the event of any catastrophe, and guess where the money and reparation would come from ? yes thats right the state or the state bank or ultimately if need be the bank of Thailand ... Get it ?

That's your first sensible post in this thread with all the others 'shoot-the-messenger' on reporting a possible run on a bank, which, I hope doesn't happen.

However a caretaker government is on very shallow legal grounds by instructing banks to shift money around to try and shore up their mismanagement of pledged rice payments.

Thaksin has an outstanding case against him for instructing the Exim Bank to provide a loan to Myanmar for telecomms thereby benefitting his telecomms company.

Government owned banks are set up for the benefit of the Thai people - not just piggy banks for governments to dip into when they please - something that Thaksin controlled parties don't seem to have learned.

[Baerboxer]

B15 Million taken out of Paradise Park Government Savings Bank by 80 people is only B187,500 average per account. Since the stock market was rocketed up this morning by 1.5%, I would not be surprised if it were more related to people like me transferring their money into equities especially as there were rumours of a cut in bank interest rates last night. I transferred B840,000 out of my account and placed it in the stock exchange. Hardly a run on the bank. B15Billion would be cause for concern not a paltry sum like this. Sounds like the PDRC propaganda machine trying to stir things up.

You may have a point, Some may be moving to other more attractive investments,

If you had moved a smaller amount, say 200k would you still have felt the need to share the figures with us?

Farmers are committing suicide for much smaller amounts of debt, and all you can do is show what a wealthy wise investor you are and how $15m is paltry.

Well played - not.

[Nickymaster]

GSB faces Bt20bn in net withdrawals

February 17, 2014 5:10 pm

Government Savings Bank on Monday faced net deposit withdrawals worth Bt20 billion.

GSB president and chief executive Worawit Chailimpamontri announced that said at a press conference that clients have withdrawn Bt30 billion following the bank’s planned lending to the rice-pledging scheme.

On the same day, the bank received new deposits worth Bt10 billion.

GSB plans to lend Bt20 billion to the Bank for Agriculture and Agricultural Cooperatives, which is tasked to repay farmers joining the pledging scheme. It has already extended Bt5 billion to BAAC.

The Nation

Edited February 17, 2014 by Nickymaster

[Chicog]

From a 16Feb Reuters report:

Thailand's National Anti-Corruption Commission (NACC) said last week it expects to file formal charges later this month against Yingluck for her role in the rice scheme while an NACC panel has already brought formal corruption charges against 15 people involved in government-to-government rice deals. Those allegations prompted China to cancel a deal to buy 1.2 million tonnes of Thai rice. The rice program was a signature policy of Yingluck, who swept to power in 2011 with the help of millions of rural votes, but it could prove to be her government's undoing.

The government opened a tender to sell 400,000 tonnes of rice from state warehouses last week in an attempt to pay farmers. Eighteen exporters submitted bids to buy up to 460,000 tonnes, prompting the government to announce it would sell a further 500,000 tonnes from state warehouses next week due to over subscription. In sign of the enormity of the rice problem, traders told Reuters the two sales combined are unlikely to raise around 20 billion baht, a fraction of the 130 billion baht needed to pay farmers.

http://uk.reuters.com/article/2014/02/16/uk-thailand-rice-idUKBREA1F07U20140216

If the GSB is guaranteed by the government, the government can just borrow money from it to pay back what they owe.

[Suriya4]

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 ...

Sorry, but we should not help the corrupt government.

[godden]

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

you should get real at best.

[Melyn]

GSB faces Bt20bn in net withdrawals

February 17, 2014 5:10 pm

Government Savings Bank on Monday faced net deposit withdrawals worth Bt20 billion.

GSB president and chief executive Worawit Chailimpamontri announced that said at a press conference that clients have withdrawn Bt30 billion following the bank’s planned lending to the rice-pledging scheme.

On the same day, the bank received new deposits worth Bt10 billion.

GSB plans to lend Bt20 billion to the Bank for Agriculture and Agricultural Cooperatives, which is tasked to repay farmers joining the pledging scheme. It has already extended Bt5 billion to BAAC.

The Nation

That is a massive slap in the face for slippery Kittirat

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

[Melyn]

some B/S o this forum..

Why add to it?

Sent from my Nexus 7 using Thaivisa Connect Thailand mobile app

[gemini81]

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?

Never, that I have seen.

The government....no dirty money, no they wouldn't want that, hahaha. The thai gov't nor PTP nor the politician in Thailand in general are ever associated with such things. C'mon Kikoman, the T.H.C. content is off the scale.

Edited February 17, 2014 by gemini81

[Valentine]

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

is what it is.

Suthep told his people to take money out. they did, but not a lot.

He then told his friends in the media to report it, hoping that it would turn into a run. It didn't

forget arrest, he should hang for this or life imprisonment.

blatant try to scupper money to farmers,

We are all entitled to an opinion but this is pure unadulterated speculation without any proof whatsoever.

Edited February 17, 2014 by Valentine

[simple1]

Ooops....

President of the Bank of Agriculture and Agricultural Cooperatives (BAAC) Luck Wajananawat said late today that the bank would cease paying farmers with the inter bank loan and to return it to the Government Savings Bank (GSB).

http://www.thaivisa.com/forum/topic/705087-baac-halts-paying-farmers-with-its-5-billion-baht-inter-bank-loan/

Bump...

[Basil B]

Who is surprised that there is a run on this bank when it's directors caved in to make an unsecured loan to a bankrupt government.

Bet the man from Dubai's puppet was first in the queue this morning with a lot of suitcases to be filled.

Pity this governments action has now caused a distrust of banks in Thailand, when the sole purpose of this bank was to encourage Thai's to save.

[whoisyourdaddy]

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

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

It's only Monday , wait till the end of the week, then add Internet transfers which not even mentioned

[Basil B]

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.

ten million, that's peanuts...

Sure it was not ten billion?

[thaigold]

That's right Bangkok ... make the hard working and impoverished Thai farmers suffer some more. You Bangkok Thais should be ashamed of yourselves - living a life of relative privilege while your brothers and sisters suffer in the agricultural sector. Thais that are hard pressed to even educate their children. Again, shame on all you people who look down upon those less fortunate Shame. My wife, who is southern Thai says they are dumb and uneducated - my question, just who do you think is to blame for this injustice?

[RobthaiIre]

My god I have never read such a load off rubbish in my life. After reading these posts from obviously bitter and twisted farang who have nothing better to do with there under used brains I will transfer 7million baht from BKK bank tomorrow to GSB to make this news a non event.

I hope it will get the same reaction as this scaremongering of people into withdrawing their money from GSB.

Why do some farang who are obviously very unhappy in Thailand bother to stay here only for the simple reason that they have f'all money/pensions to live in their own country like they live here.

Many posts by farang love to go on about the thais being uneducated when in fact they are highly uneducated themselves. They no nothing about interbank lending and how banks make money and economics in general.

The only thing I want is a stable government elected by the majority of the people which these protesters are hell bent on not allowing, they have reached an all time low now with the way they are playing with the millions of people who depend on rice as there source of income.

Shame on all the farang who support this puppet Suthep and his cronies. And if you cannot see that they are now playing with the farmers and have been from the start knowing full well that an inconclusive election would only result in suffering for the farmers.

Everybody needs to have a long hard look at there own education.

[SICHONSTEVE]

B15 Million taken out of Paradise Park Government Savings Bank by 80 people is only B187,500 average per account. Since the stock market was rocketed up this morning by 1.5%, I would not be surprised if it were more related to people like me transferring their money into equities especially as there were rumours of a cut in bank interest rates last night. I transferred B840,000 out of my account and placed it in the stock exchange. Hardly a run on the bank. B15Billion would be cause for concern not a paltry sum like this. Sounds like the PDRC propaganda machine trying to stir things up.

Oh what a strange perspective you have!!!

I just had to have a bit of a chuckle over that one - comic post of the day with nobody anywhere near in sight!!!

[WAERTH]

I guess no one read the news article that the bank itself admitted 30 BILLION BAHT was withdrawn today (and 10 billion baht deposited) .... making for 20 BILLION BAHT in net withdrawal that that the bank admits too!

[Showbags]

Which bank is next ?

[whoisyourdaddy]

My god I have never read such a load off rubbish in my life. After reading these posts from obviously bitter and twisted farang who have nothing better to do with there under used brains I will transfer 7million baht from BKK bank tomorrow to GSB to make this news a non event.

I hope it will get the same reaction as this scaremongering of people into withdrawing their money from GSB.

Why do some farang who are obviously very unhappy in Thailand bother to stay here only for the simple reason that they have f'all money/pensions to live in their own country like they live here.

Many posts by farang love to go on about the thais being uneducated when in fact they are highly uneducated themselves. They no nothing about interbank lending and how banks make money and economics in general.

The only thing I want is a stable government elected by the majority of the people which these protesters are hell bent on not allowing, they have reached an all time low now with the way they are playing with the millions of people who depend on rice as there source of income.

Shame on all the farang who support this puppet Suthep and his cronies. And if you cannot see that they are now playing with the farmers and have been from the start knowing full well that an inconclusive election would only result in suffering for the farmers.

Everybody needs to have a long hard look at there own education.

I honestly hope you do and make sure to post the receipt , because otherwise you would be just full of $hit

[Showbags]

I guess no one read the news article that the bank itself admitted 30 BILLION BAHT was withdrawn today (and 10 billion baht deposited) .... making for 20 BILLION BAHT in net withdrawal that that the bank admits too!

so many speed readers about...