Banks lowering the insured amount of money to 1 million baht?

[ThaiTony2]

At this point it's hearsay. I haven't yet verified this with any bank management but I did hear from a friend that soon the amount of insured funds at the banks will be lowered, not to exceed 1 million baht of insured amount. Also, it doesn't matter if you have multiple accounts or not. The total amount of insured amount is 1million baht regardless of how many accounts you have in your name.

Question(s): Has anyone heard similar or can confirm with respect to the banks insurance only guaranteeing upto 1mil.?

[seedy]

Moved to Banking - more chance for a response

[CMBob]

Historically, the Thai government guaranteed all bank funds starting some time after the 1997 economic crisis. Then, about 10+ years later a law was passed to gradually reduce the amount, the final amount to be 1,000,000 in any one institution which was to take effect in 2012; however, the government postponed that law from taking effect. As I understand it now, a 25,000,000 limit went into effect sometime this year and it's slated to drop to the 1,000,000 (baht) level sometime next year.

But....I have to believe that the law will be postponed again or the government will increase the incredibly low amount of only a million baht. We'll see.

[fletchsmile]

At the moment the DPA covers THB 25mn effective 11 August 2015

It is scheduled to be reduced to THB 1mn effective 11 August 2016

http://www.dpa.or.th/ewt_news.php?nid=320&filename=index___EN

The hearsay has now moved to whether it will actually get reduced to THB 1mn in 2016, as banks among others would like to see a higher level.

Two of the possibilities are:

1) The reduction to THB 1mn will get postponed. There's precedents for this, as the deadlines have already been put back in the past since first anounced. This was mainly due to the GFC and western banks being in a mess so that Thailand didn't think it was appropriate to reduce when the west was increasing protection

2) The reduction is to a higher level of say THB 10mn

The first option is more probable as it wouldn't require a new law, only postponing. The second option is more difficult as it requires amending the law

Proceeding as currently scheduled is of course another option.

Cheers

Fletch

[meatboy]

if it was to happen [VERY UNLIKELY] money laundering would be legal and stashing money under the bed would attract house robberies by the bag full.

[KittenKong]

As far as I know, as in Europe, the Thai DPA cover for each depositor is on a per bank basis (regardless of how many accounts you have with the bank), and so anyone with a lot of money to deposit may prefer to do so with multiple banks.

The DPA website is as clear as mud about this, as one might expect.

[Tywais]

As far as I know, as in Europe, the Thai DPA cover for each depositor is on a per bank basis (regardless of how many accounts you have with the bank), and so anyone with a lot of money to deposit may prefer to do so with multiple banks.

Yes, it is 1 million per bank. Multiple accounts in the same bank will be insured at the aggregate of 1 million. I posted a poll regarding this a couple of months ago.

Bank deposit insurance reduction in 2016

[fletchsmile]

As far as I know, as in Europe, the Thai DPA cover for each depositor is on a per bank basis (regardless of how many accounts you have with the bank), and so anyone with a lot of money to deposit may prefer to do so with multiple banks.

The DPA website is as clear as mud about this, as one might expect.

The key features document on their website is pretty clear about it being per depositor per institution,

"Deposits and accrued interest denominated in Thai Baht accounts and shall not exceed 1 million Baht per depositor per institution."

and goes on to say how this will be phased in. As mentioned original dates have been put back, there's another document for this

http://www.dpa.or.th/more_news.php?cid=9&filename=index___EN

Cheers

Fletch

[Krataiboy]

The real question every investor/depositor needs to ask is WHY?

Since bank deposit interest rates world wide are at historic lows, one would have thought that in order to bring in more business insurance cover would be going up, not down.

However, with the central banks creating digital money out of thin air, banks no longer need our money to keep their fractional reserve ponzi lending scheme going.

Their next move will be to make us all pay to keep our savings in their vaults and within the next 20 years we will have a cashless society, in which we will all pay for goods with plastic or, eventually, an implanted chip linked to a central computer.

The takeover of our lives by the surveillance state, now being ratcheted up using the threat of endless terrorism to induce a permanent state of mass paranoia, is just part of this process while will end in the total control of our lives by a political/corporate oligarchy.

[Dumbastheycome]

The real question every investor/depositor needs to ask is WHY?

Since bank deposit interest rates world wide are at historic lows, one would have thought that in order to bring in more business insurance cover would be going up, not down.

However, with the central banks creating digital money out of thin air, banks no longer need our money to keep their fractional reserve ponzi lending scheme going.

Their next move will be to make us all pay to keep our savings in their vaults and within the next 20 years we will have a cashless society, in which we will all pay for goods with plastic or, eventually, an implanted chip linked to a central computer.

The takeover of our lives by the surveillance state, now being ratcheted up using the threat of endless terrorism to induce a permanent state of mass paranoia, is just part of this process while will end in the total control of our lives by a political/corporate oligarchy.

"Money" is not your property. It is a State owned symbol of your accrued worthiness. Increasingly controls on how, where, why you wish to dispense are being scrutinized and controlled.

[bitcoinforever]

the higher limits were made to give people confidence in the system with many bank failures after the 98 crises people's deposits were not covered total losses. Question you should be asking is do you think they ever had the money to cover 25 million in the first place smoke and mirrors . they dont even have the 1 million now. all foreign currency accounts are not covered. and if it does happen foreign holders just like 98 will be put at the bottom of the list . beware when the shit hits the fan like 98 and it will, it is overdue in Asia, what happened in Cyprus will look gentle compared to what the Thai's will do to save there own ass.

[KittenKong]

As far as I know, as in Europe, the Thai DPA cover for each depositor is on a per bank basis (regardless of how many accounts you have with the bank), and so anyone with a lot of money to deposit may prefer to do so with multiple banks.

The DPA website is as clear as mud about this, as one might expect.

The key features document on their website is pretty clear about it being per depositor per institution,

"Deposits and accrued interest denominated in Thai Baht accounts and shall not exceed 1 million Baht per depositor per institution."

and goes on to say how this will be phased in. As mentioned original dates have been put back, there's another document for this

For some reason I didnt see that page. Other pages were less clear.

[SOUTHERNSTAR]

The real question every investor/depositor needs to ask is WHY?

Since bank deposit interest rates world wide are at historic lows, one would have thought that in order to bring in more business insurance cover would be going up, not down.

However, with the central banks creating digital money out of thin air, banks no longer need our money to keep their fractional reserve ponzi lending scheme going.

Their next move will be to make us all pay to keep our savings in their vaults and within the next 20 years we will have a cashless society, in which we will all pay for goods with plastic or, eventually, an implanted chip linked to a central computer.

The takeover of our lives by the surveillance state, now being ratcheted up using the threat of endless terrorism to induce a permanent state of mass paranoia, is just part of this process while will end in the total control of our lives by a political/corporate oligarchy.

This decreasing of the deposit guarantee have been in the making for years and there is nothing new about it. The first time I saw governments warning about this decrease was about 2011. It is also administered by a law that came about because of the 1997/98 crisis.

As to the rest of your comments yes I agree governments wants a cashless society to enable them to control everyone. That's why they hate gold and silver.

[Shiver]

I haven't read the whole thread as it's late now, but my understanding (not factual) is that this year they reduced it in August from 50 mill to 25 mill, and next August (2016) they will reduce it to 1 mill. My understanding also is that is per bank and not per bank account.

[HerbalEd]

If this is "hearsay" then why is this even being posted?

[SOTIRIOS]

....come on quality tourists....

[Jip99]

If this is "hearsay" then why is this even being posted?

Well spotted.

Clearly not "hearsay" as the proposal to reduce the limit is set in law and has been widely published.

Any "hearsay" may relate to whether BoT defer it's introduction again.

[louse1953]

As far as I know, as in Europe, the Thai DPA cover for each depositor is on a per bank basis (regardless of how many accounts you have with the bank), and so anyone with a lot of money to deposit may prefer to do so with multiple banks.

Yes, it is 1 million per bank. Multiple accounts in the same bank will be insured at the aggregate of 1 million. I posted a poll regarding this a couple of months ago.

Bank deposit insurance reduction in 2016

When i'm out and about and feel like a bit of ac and chitchat,i drop in to a bank and see if i can open an acc.If i can,i come back the next day.A man can't have enough bank acc.

[Krataiboy]

The real question every investor/depositor needs to ask is WHY?

Since bank deposit interest rates world wide are at historic lows, one would have thought that in order to bring in more business insurance cover would be going up, not down.

However, with the central banks creating digital money out of thin air, banks no longer need our money to keep their fractional reserve ponzi lending scheme going.

Their next move will be to make us all pay to keep our savings in their vaults and within the next 20 years we will have a cashless society, in which we will all pay for goods with plastic or, eventually, an implanted chip linked to a central computer.

The takeover of our lives by the surveillance state, now being ratcheted up using the threat of endless terrorism to induce a permanent state of mass paranoia, is just part of this process while will end in the total control of our lives by a political/corporate oligarchy.

Sorry, bad typo. Should of course be "which" not "while" at start of last line.

[fletchsmile]

If this is "hearsay" then why is this even being posted?

What's hearsay to some is fact to others ... what OP heard was part of the story

Edited December 18, 2015 by fletchsmile