How do you feel about this?

[riclag]

Is my money safe in kasikhorn Bank in Sakon Nakhon? My Thai wife says she's heard rumors of the Bangkok Kasikhorn Bank, that it might go belly up.

[fletchsmile]

One of the safest Thai banks.

Would suggest that the person who passed the rumour to your wife doesn't know what they're talking about.

If you've under THB 25 mio on deposit then your THB deposits are also covered by deposit protection act = govt guarantee in addition to the safety of the bank itself.

[riclag]

One of the safest Thai banks.

Would suggest that the person who passed the rumour to your wife doesn't know what they're talking about.

If you've under THB 25 mio on deposit then your THB deposits are also covered by deposit protection act = govt guarantee in addition to the safety of the bank itself.

what does thb 25 mio mean please

[Soutpeel]

One of the safest Thai banks.

Would suggest that the person who passed the rumour to your wife doesn't know what they're talking about.

If you've under THB 25 mio on deposit then your THB deposits are also covered by deposit protection act = govt guarantee in addition to the safety of the bank itself.

what does thb 25 mio mean please

25 million baht

[phetphet]

It's probably a bit of rumour mongering coming from this:

Thailand's three major banks have made extra provisions to cover increased risks related to syndicated loans of 44 billion baht ($1.3 billion) to Sahaviriya Steel Industries Pcl (SSI), bank executives said on Wednesday.

Krung Thai Bank, Siam Commercial Bank and Tisco Bank lent SSI, Thailand's largest steel maker, the money to acquire a British steel mill for $1.1 billion in early 2011. The loans were secured against the plant.

SSI has made losses since 2011. The company's hard times prompted Thailand's central bank to instruct the three banks to set aside loan loss provisions of up to 60 percent, up from 36 percent previously, the bankers told Reuters.

Southeast Asia's largest, fully integrated steel sheet maker, has been blighted by sluggish domestic demand and a weak global market.

"We booked extra provision for loans extended to SSI," Oranuch Apisaksirikul Chief Executive Officer at Tisco group told reporters. But he said the debt was not bracketed as non-performing loans.

Pimolpa Suntichok, head of corporate business at Siam Commercial Bank told Reuters that provisions for SSI loans were included in the bank's overall provisions of 5.1 billion baht for the second quarter.

Krung Thai Bank has taken similar action, according to an official there.

Analysts estimate that Siam Commercial and Krung Thai loaned SSI 20 billion baht apiece, while Tisco loaned 4 billion baht.

[swissie]

One of the safest Thai banks.

Would suggest that the person who passed the rumour to your wife doesn't know what they're talking about.

If you've under THB 25 mio on deposit then your THB deposits are also covered by deposit protection act = govt guarantee in addition to the safety of the bank itself.

Deposit Protection Act. If certain events should ever force the DPA to spring into action, would you be surprised, if the government (in an overnight decision) would declare: " The DPA is designed for Thai-Nationals only. Foreigners and their deposits are not covered under the DPA".

I would not be surprised. Why not? Because "This is Thailand".

Cheers.

[fletchsmile]

One of the safest Thai banks.

Would suggest that the person who passed the rumour to your wife doesn't know what they're talking about.

If you've under THB 25 mio on deposit then your THB deposits are also covered by deposit protection act = govt guarantee in addition to the safety of the bank itself.

Deposit Protection Act. If certain events should ever force the DPA to spring into action, would you be surprised, if the government (in an overnight decision) would declare: " The DPA is designed for Thai-Nationals only. Foreigners and their deposits are not covered under the DPA".

I would not be surprised. Why not? Because "This is Thailand".

Cheers.

Yes I'd be surprised

Reality is: probability of the bank defaulting is very low. Then what you're asking is low probability also. Multiply the two and it's not worth losing sleep over

Cheers

Fletch

[Jip99]

I wonder if the OP reacts to all the rumours his wife hears!

[MichaelJohn]

I believe that Kasikorn Bank is one of the safest. Like PhetPhet I'm sure the rumor started with Krung Thai or SCB and got mixed up. Moody's expressed concern yesterday about the effect of such large loans on those two banks.

It worth adding that I don't think anyone should rely on the Deposit Protection Fund as it is assets are woefully short of the amount it would need to bail out any bank and hence most people would not get their money back. It is intended (not sure if it hasn't already happened) to reduce the protection to B1M per person (not per account).

[chiang mai]

It's seriously bad news when western farangs start paying attention to the Thai rumor mill, goodness me!

[Soutpeel]

It's seriously bad news when western farangs start paying attention to the Thai rumor mill, goodness me!

Well lets face there are many farangs in Thailand who believe their teeraks buffalo's get sick a lot

[Rocketsurgeon]

I hate this bank so much. Just today sat for 30 mins to get my pay. I wd as soon as it hits not to allow them a satang for loans.

It's a huge fail. I've avoided it for decades, no choice.

Does not your poor experience and wait times make you want to leave asap??

[manarak]

I hate this bank so much. Just today sat for 30 mins to get my pay. I wd as soon as it hits not to allow them a satang for loans.

It's a huge fail. I've avoided it for decades, no choice.

Does not your poor experience and wait times make you want to leave asap??

I experience almost no wait times when I go to the branch and most of my business is nearly immediate through ebanking anyway.

thumbs up for kasikorn

[rott]

With a mentality like that you surely do not earn enough for banks to be a problem.

[anon4546543]

I sent $20,000 AU to my wife in April to This bank. After 2 weeks she said she had not received it. I was going to Thailand a week later anyway. So went to a branch on Sukomvit. Teller checked, no deposit made. I showed her the original transaction form from my bank in Australia. She rang the head bank. They denied any such transaction. At my expense, I phoned my Aust bank. They contacted this Thai bank and threatened them with legal action. Suddenly all is good, no explanation but money is transferred immediately. I immediately withdrew all money from my a/c and wife a/c and opened an a/c for both of us at Bangkok Bank. No troubles since. On return to Aust, my bank contacted me to ask if all was ok. They said I could pursue this and said it was not uncommon as other people in my own small city had the same problems.

[Soutpeel]

I sent $20,000 AU to my wife in April to This bank. After 2 weeks she said she had not received it. I was going to Thailand a week later anyway. So went to a branch on Sukomvit. Teller checked, no deposit made. I showed her the original transaction form from my bank in Australia. She rang the head bank. They denied any such transaction. At my expense, I phoned my Aust bank. They contacted this Thai bank and threatened them with legal action. Suddenly all is good, no explanation but money is transferred immediately. I immediately withdrew all money from my a/c and wife a/c and opened an a/c for both of us at Bangkok Bank. No troubles since. On return to Aust, my bank contacted me to ask if all was ok. They said I could pursue this and said it was not uncommon as other people in my own small city had the same problems.

K bank had the money in a holding account in BKK gaining interest happen to me with SCB

but i am curious as to what legal action they threatened them with..given the banks are in different countries so whose jurisdiction would the legal threat be carried out in and who would pay for said legal action ?

[anon4546543]

Soutpeel. My bank said there were protections, protocols for the international transfer of money. They said most Thai banks are signatories to this charter. This bank was one but it had a bad record, not only of withholding transfer funds but also denying that any transfer had occurred. Bangkok Bank phones my wife within 24 hours of me sending money. Bangkok Bank appears to be ethical. As for legal threat, I don't know. But my bank said there were procedures and that This bank would suffer a scandal were their dubious practices become known. This is only my experience and confirmed by a senior teller at my Aust bank. I post this as a warning to keep all records and the phone number of your local bank when transferring money and travelling overseas.

[HampiK]

I transfered already many times money to my Kasokorn account. Most of the time the money arrived 2 later... sometimes it needs 3 days.. Never had to wait longer than this except one time.. but this was a problem because i used a different bank in my homecountry which not have that good connections.. there it took 1 week.

They always call me when the money arrives and ask if i want convert the money to thai bath with the exchange rate.... If i not pick up the phone after 1-2 phones call from bank.. they will convert the money anyway a few hours later, which is fine for me.

I not have experience with other thai bank but i guess more or less it will be the same. So I think it is not a general problem of kasikorn.. maybe a problem of the branch. As with opening accounts it depends on the branch or on the person which you talk with. Most of the time I am quite happy with my branch (Siam Paragon).

[fletchsmile]

I believe that Kasikorn Bank is one of the safest. Like PhetPhet I'm sure the rumor started with Krung Thai or SCB and got mixed up. Moody's expressed concern yesterday about the effect of such large loans on those two banks.

It worth adding that I don't think anyone should rely on the Deposit Protection Fund as it is assets are woefully short of the amount it would need to bail out any bank and hence most people would not get their money back. It is intended (not sure if it hasn't already happened) to reduce the protection to B1M per person (not per account).

Good point you raise around DPA ability to actually be able to bail out a Thai bank that gets into trouble.

Not many people know that of the approx 47 basis points levy on bank deposits that Thai banks pay only 1 b.p. now goes to the DPA fund for such purpose and 46 b.p. goes towards historic debts within the system

Even fewer know the ability of the DPA and the resources it has at its disposal to cover a bail out of a Thai bank. When I've looked at briefly in the past, they wouldn't cover one of the large 4 banks, but probably would cover a mid-tier size bank.

However, I'd expect the government to step in, in some way if things got that serious. If things got as bad as they did in the US banking system, Thai government would have the option of printing more baht and learning from the Americans So you'd probably get your baht back but it would be worth less if measured vs international currencies.

Cheers

Fletch

[Pib]

Yeap the U.S. did print a lot of extra money to implement QE. Now the dollar has risen in value against most currencies but I doubt it would work out as well for the Thai baht being a minor world currency.

[swissie]

I believe that Kasikorn Bank is one of the safest. Like PhetPhet I'm sure the rumor started with Krung Thai or SCB and got mixed up. Moody's expressed concern yesterday about the effect of such large loans on those two banks.

It worth adding that I don't think anyone should rely on the Deposit Protection Fund as it is assets are woefully short of the amount it would need to bail out any bank and hence most people would not get their money back. It is intended (not sure if it hasn't already happened) to reduce the protection to B1M per person (not per account).

Good point you raise around DPA ability to actually be able to bail out a Thai bank that gets into trouble.

Not many people know that of the approx 47 basis points levy on bank deposits that Thai banks pay only 1 b.p. now goes to the DPA fund for such purpose and 46 b.p. goes towards historic debts within the system

Even fewer know the ability of the DPA and the resources it has at its disposal to cover a bail out of a Thai bank. When I've looked at briefly in the past, they wouldn't cover one of the large 4 banks, but probably would cover a mid-tier size bank.

HoweFood for thoughtver, I'd expect the government to step in, in some way if things got that serious. If things got as bad as they did in the US banking system, Thai government would have the option of printing more baht and learning from the Americans So you'd probably get your baht back but it would be worth less if measured vs international currencies.

Cheers

Fletch

Quote:

Not many people know that of the approx 47 basis points levy on bank deposits that Thai banks pay only 1 b.p. now goes to the DPA fund for such purpose and 46 b.p. goes towards historic debts within the system

Even fewer know the ability of the DPA and the resources it has at its disposal to cover a bail out of a Thai bank. When I've looked at briefly in the past, they wouldn't cover one of the large 4 banks, but probably would cover a mid-tier size bank.

Food for thought, isn't it ?

Cheers.