Most banks say deposits normal after Bt30 billion pulled from GSB accounts

[webfact]

BANK DEPOSIT
Most banks say deposits normal after Bt30 billion pulled from GSB accounts
Sucheera Pinijparakarn
The Nation

Clients oppose bank's ties to rice scheme; BBL deposits rise

BANGKOK: -- Major private banks have not detected a wave of deposits, even though Bt30 billion in cash was withdrawn by customers of the Government Savings Bank yesterday.

Weidt Nuchjalearn, a first senior executive vice president of Krungthai Bank, said deposits and withdrawals at KTB were normal.

New customers at the bank yesterday came in for the latest time-deposit campaign offering an interest rate of 4 per cent on a 60-month fixed deposit, 3 per cent for a 14-month fixed deposit and 2.8 per cent with a five-month fixed deposit.

KTB, a state-owned and publicly traded commercial bank, last week sent outreach teams to reassure wealthy depositors that it was not involved with the rice-pledging scheme after one major depositor informed the bank that it would withdraw its money, as it was worried the bank would help finance the rice-pledging scheme.

The bank has a business continuity plan if it sees a run on deposits. However, its customer base consists mainly of businesses with payroll accounts and SMEs, unlike the GSB, which has mostly retail depositors, he added.

Smith Banomyong, an executive vice president of Siam Commercial Bank, said customers yesterday opened deposit accounts at normal levels. The bank has not seen a flood of deposits.

Noppawan Jermhansa, a first senior vice president at Kasikornbank, said KBank has not noticed a larger flow of new money.

KBank yesterday brought back its 24-month, tax-free fixed deposit account, paying 3.5-per-cent interest, after it drew 100,000 new accounts last year. The minimum monthly deposit is only Bt1,000.

The bank renewed the campaign following its initial plan not to acquire depositors from other banks or the GSB.

"This deposit product is designed to tap the mass segment who have savings discipline," she said.

Bangkok Bank was an exception, with savings rising even though it did not launch a special deposit campaign.

Pochanee Kongkalai, an executive vice president, said the bank found deposits increasing from the wealthy, middle-class and mass segments. It is highly possible that the new depositors were customers moving over from the GSB.

Suthimon Voravit, an officer of a private company and a GSB depositor, said she withdrew funds from her account at the GSB because she felt uncomfortable leaving her money there after the bank granted a loan to the BAAC.

She will shift her savings to other banks, but if they have extended credit to BAAC like the GSB did, she might consider pulling out her money from those banks and investing in gold instead.


-- The Nation 2014-02-18

[NongKhaiKid]

Just a thought but if people withdraw their cash from a bank because of fears over what's happening they may not be in a rush to deposit elsewhere in case their new choice of bank becomes involved too.

I can see a massive increase in the sale of padlocks as folks get security for their mattresses.

[thesetat2013]

Even though the farmers will probAbly suffet from GSB cancelling their agreement with BAAC i think it s good the people showed the bank that they lose customer trust when they lie and when they take chances with the depositor money

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

[SOTIRIOS]

...surely a vote of confidence by the populace....

...so in other words...a little more ...and the Thai people will be paying for this sham........... twice....

[bushwacker]

The Association of the Brotherhood of Sneak Thieves, Robbers and B&E Journeymen, applauds the government, BAAC and GSB on their recent policies and actions. The President of the Association, Khun Light Fingers was quoted as saying, "these latest developments will greatly benefit his Brotherhood and is Good for the Economy. Valuables SHOULD BE KEPT AT HOME!"

[Jack Mountain]

The Association of the Brotherhood of Sneak Thieves, Robbers and B&E Journeymen, applauds the government, BAAC and GSB on their recent policies and actions. The President of the Association, Khun Light Fingers was quoted as saying, "these latest developments will greatly benefit his Brotherhood and is Good for the Economy. Valuables SHOULD BE KEPT AT HOME!"

Has the Ferengi's landed?

Edited February 18, 2014 by Jack Mountain

[maanoi]

Was this written as a news article or an ad?

[aussieinthailand]

OK the sky is falling,,,

What I see is a bank that has secured a very large loan from a customer at interest, so that would equal profit yeah, isn't that what banks do,,,

[bkkdave1220]

OK the sky is falling,,,

What I see is a bank that has secured a very large loan from a customer at interest, so that would equal profit yeah, isn't that what banks do,,,

lot of people on TV this am shown putting money in.

one woman putting in 2 million in cheques. lot of them as well, but it didn't show up on Bluesky I'm sure.

works both ways and banks would be wrong to belive that Suthep has either the numbers or the momentum... he is loosing both rapidly along with rally sites and leaders.

I think the Gov have to move them out carefully and show the world who is the elected and who is the coup monger.

if they do it right, they could destroy the elite coup mongers once and for all and I am sure they are thinking this. break the cycle, but not in the way Suthep wanted to break it

[siamjimi]

[ The bank has a business continuity plan if it sees a run on deposits ]

Yeah - sure they do - its called taking your money hostage and looting the coffers before the catostrophic financial crash goes viral and is pandemic.

[bkkdave1220]

i closed the kids 2 TMB accounts,,,,, didn't see that on nation web site!!!

Didn't see much either of people washing their feet in Singha beer as they did late last year.

cuts both ways here and they are playing a very dangerous game that could back fire again.

Again? like the backers in asoke and Siam areas who are going broke along with some big hotels taking financial hits.

does not always work how you plan.

[MaxLee]

"Most banks say deposits normal after Bt30 billion pulled from GSB accounts"

Just a normal day to day cooperative white lying operations to lure the public and save the banks' image, aka face...

[winstonc]

a normal day but still 30 billion light in the tills

[Scamper]

This is what happens when banking customers get spooked. And this is the kind of ripple effect this administration can expect every time they pull one of these stunts.

[zydeco]

Saw the reports of some Reds making some deposits. Didn't say, however, if they took it right back out again. I wonder.

[bigbamboo]

i closed the kids 2 TMB accounts,,,,, didn't see that on nation web site!!!

Didn't see much either of people washing their feet in Singha beer as they did late last year.

cuts both ways here and they are playing a very dangerous game that could back fire again.

Again? like the backers in asoke and Siam areas who are going broke along with some big hotels taking financial hits.

does not always work how you plan.

Singha beer is too pricey now. There are much cheaper foot washes on the market.

And some of them even taste better too!

[drand11]

This is stupid!! The bank was not in any way pushing their liquidity or limits. This is all propaganda. Even if the money is used for the rice loan, who cares! It allows the Govt to fix the problems brought on by the shutdown of government. Thailand is not in any way in jeopardy on failing to oay debtirs! Debt ratios are low in Thai Govt. This is all just CRAP!@ By the way, that loan was at 2% annyal for 6 month short term!!

[drand11]

This is stupid!! The bank was not in any way pushing their liquidity or limits. This is all propaganda. Even if the money is used for the rice loan, who cares! It allows the Govt to fix the problems brought on by the shutdown of government. Thailand is not in any way in jeopardy on failing to oay debtirs! Debt ratios are low in Thai Govt. This is all just CRAP!@ By the way, that loan was at 2% annyal for 6 month short term!!