Deposit Insurance On Bank Accounts?

[fxm88]

Does anyone know if bank accounts in Thailand are insured against the failure/insolvency of the bank? Similar to the FDIC (or SIPC) in the States or the CDIC in Canada.

If so, does anyone know what the limits are? Per depositor or per account?

What kind of accounts are or are not covered? Savings accounts, CD/fixed accounts, mutual funds, etc.?

And, perhaps most importantly, would farang accounts even be covered?

Thanks!

Edited June 29, 2006 by fxm88

[Chang_paarp]

[Khun Bob]

Very intresting point...

Would it be safer to put your money in a governement bank - such as krung thai - or if they have problems to what degree with the thai gov help ? And how would a foreigner owned account fair in this ?

[samran]

See:

http://www.bangkokpost.net/ecoreviewye2004/finance.html

[Heng]

Probably best to keep as well diversified bank wise (local and international banks) as possible. Remember we're talking about institutional risk, so you're still much less exposed risk wise than those who are exposed to market risk (forex, stock markets, etc.). You'll probably see the 'signs' if the likes of HSBC, Citibank, Standard Chartered, and even the larger Thai banks (BBL, K-Bank, SCB, Krungsri) start to wobble.

Pick an X amount you're comfortable with, and don't let anyone bank hold more than that X amount.

[fxm88]

http://www.bangkokpost.net/ecoreviewye2004/finance.html

This undated article appears to be from the end of 2004 and states:

Local banks will face another key challenge in 2005, when a new law establishing a deposit insurance agency is expected to be passed... Since 1997, the central bank's Financial Institutions Development Fund has offered a blanket guarantee for all deposits within the banking system... Deposit insurance will be phased in over a four-year period, with coverage of up to 50 million baht given in the first year and falling to just one million by the fourth year.

Did such a law ever get passed? Did such an agency ever get set-up? In all of the accounts that I've read, foreigners accounts are never specifically mentioned. Perhaps someone on this board who was around at the time might share their story.

[yankee-expat]

http://www.bangkokpost.net/ecoreviewye2004/finance.html

This undated article appears to be from the end of 2004 and states:

Local banks will face another key challenge in 2005, when a new law establishing a deposit insurance agency is expected to be passed... Since 1997, the central bank's Financial Institutions Development Fund has offered a blanket guarantee for all deposits within the banking system... Deposit insurance will be phased in over a four-year period, with coverage of up to 50 million baht given in the first year and falling to just one million by the fourth year.

Did such a law ever get passed? Did such an agency ever get set-up? In all of the accounts that I've read, foreigners accounts are never specifically mentioned. Perhaps someone on this board who was around at the time might share their story.

TIT. Who knows? I would like to know. This is the type of question that makes the customer "service" rep at a bank look like a baby about to take a dump. There is just no good way to get that idea translated, especially when my Thai wife is doing the translating and has never heard of insurance for a bank account.

[HenryB]

Does anyone know if bank accounts in Thailand are insured against the failure/insolvency of the bank? Similar to the FDIC (or SIPC) in the States or the CDIC in Canada.

If so, does anyone know what the limits are? Per depositor or per account?

What kind of accounts are or are not covered? Savings accounts, CD/fixed accounts, mutual funds, etc.?

And, perhaps most importantly, would farang accounts even be covered?

Thanks!

Read the law if your are American or from England Bank Accounts are insured up 10 million Baht by the FDIC or EFDIC evenif you Thai GF or wife gives it to her familiy

So put the money in a bank and give the familiy your pin number

Edited December 17, 2006 by HenryB

[jumnien]

If I'm not mistaken bank deposits in Thailand are fully insured. It is, however, a sort of Buddhistic insurance arrangement that incorporates impermanence, no real self and suffering into the settlement outcome in case of loss.