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Will a military coup effect my savings?


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With all the unrest with the red shirts etc....if a coup were to happen could this have an effect on my savings accounts here in Thailand?

What happened last time after Thaksin, did people lose any money?

Or is it purely down to a financial crisis, something like we seen in the west a few years back?

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Thailand economy is about to crash

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Are you suggesting I take all my money out in cash or transfer it overseas?

Is there a safe limit of savings were one would not be effected if the economy were "to crash"?

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The OP need not worry about the safety of banks here. anyway, bank accounts are insured by the BOT up to THB 50 million per person.

I thought it wasTHB1Million...

Coverage of insured deposits

The Coverage of insured deposits according to The Royal Decree on an extension of deposit coverage, is as follows:

Period

Coverage

11 Aug 2012 – 10 Aug 2015

Baht 50 million

11 Aug 2015 – 10 Aug 2016

Baht 25 million

11 Aug 2016 – Onwards

Baht 1 million

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The OP need not worry about the safety of banks here. anyway, bank accounts are insured by the BOT up to THB 50 million per person.

I thought it wasTHB1Million...

Coverage of insured deposits

The Coverage of insured deposits according to The Royal Decree on an extension of deposit coverage, is as follows:

Period

Coverage

11 Aug 2012 – 10 Aug 2015

Baht 50 million

11 Aug 2015 – 10 Aug 2016

Baht 25 million

11 Aug 2016 – Onwards

Baht 1 million

Can you explain how the above time periods/limits work? Is tis to do with time deposits?

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No, between August 2012 and 2015, every account holder, regardless of the type of savings/deposit account, is insured up to the value of their accounts or to a maximum of THB 50 mill,. Between 2015 and 2016 the insured amount of coverage is reduced to 25 million and so on. Nothing really to do with just time deposits, it's applies to all account types.

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It means the government's deposit protection insurance coverage amounts -- which only protect against the financial failure of a bank, not any other monkey business -- are slated to be gradually be lowered to the amounts specified above, on the dates listed.

So the coverage amount is high right now, but it's going to get considerably lower in the coming couple years. Actually, the coverage amount had previously been set to fall to 1 million by now, but then the government pushed back the reduction timeline. Hard to say whether the same re-scheduling thing might happen again in the future.

But ultimately, if they stick to their schedule this time, a 1 million baht cap starting in 2016 isn't much in the way of protection.

Edited by TallGuyJohninBKK
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<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>


Thailand economy is about to crash
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Sent from my iPhone using Thaivisa Connect Thailand

After Thaksin don't know ................DURING loads of people lost a lot!

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<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Thailand economy is about to crash

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Sent from my iPhone using Thaivisa Connect Thailand

After Thaksin don't know ................DURING loads of people lost a lot!

Do enlighten us all please, give us some details!coffee1.gif

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Probably better to worry about exogenous events that might affect your savings rather than what could effect them.

http://blog.oxforddictionaries.com/2011/03/affect-versus-effect/

And presumably the main worry with a coup would be with regard to exchange rates and price inflation , neither of which would be covered by having deposit insurance, as opposed to theft of funds or collapse of banks, which would be covered by insurance.

But in Thailand coups tend to be treated with yawns, at least domestically. Of course, on Thai Visa any event (whether real or, more often, imagined) can be cause for mass hysteria,

Edited by Suradit69
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What may happen in the future is difficult to predict – financial bubble, military coup, meltdown… – however last time in 2006 nothing happened to ordinary peoples savings or funds. I am not worried about my savings in Thailand... smile.png

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By looking at them figures I can say I'm safe by a long a way :-)

Does that include all thai banks or just the government ones?

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Well yeah, but a "guarantee" is one thing, and getting the money is another.

But it seems you are concerned that a military coup means they behave like the Khmer Rouge or something. Traditionally, they just take over as government - that's it. Life otherwise goes on as normal.

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And presumably the main worry with a coup would be with regard to exchange rates and price inflation , neither of which would be covered by having deposit insurance, as opposed to theft of funds or collapse of banks, which would be covered by insurance.

Theft of funds, whether by criminals outside or inside a Thai bank, isn't covered by the government's deposit protection scheme.

The deposit protection only covers if the bank itself entirely fails and basically goes out of business.

So the theft issue wouldn't apply unless the theft was so massive that it caused the total failure of the bank, which would be pretty unlikely.

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My guess is that a 1 million Baht cap will provide coverage for 99% of accounts, a million baht in savings is a lot of money for most Thai people.

And you reckon they've got that kind of cash lying around?

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My guess is that a 1 million Baht cap will provide coverage for 99% of accounts, a million baht in savings is a lot of money for most Thai people.

And you reckon they've got that kind of cash lying around?

Yes, plus their credit line is more than sound:

http://www2.bot.or.th/statistics/BOTWEBSTAT.aspx?reportID=94&language=ENG

But let's be clear, not all banks would fail at the same time, even in a worst case scenario. The above presumes that a single major bank failed, in which case the deposit protection scheme is more than capable. But perhaps you should look into the levels of capitalization of some of the banks in Thailand, it's very reassuring, which is why BOT can afford to extend the deposit protection scheme for 50 million per account, until 2015..

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Thailand economy is about to crash

Find safer pptions

Sent from my iPhone using Thaivisa Connect Thailand

Are you suggesting I take all my money out in cash or transfer it overseas?

Is there a safe limit of savings were one would not be effected if the economy were "to crash"?

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

when you find out let me know. never keep more money in Thailand than you can afford to lose!

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