Banks agree with extension of deposit protection

[webfact]

Banks agree with extension of deposit protection

BANGKOK, 28 April 2016 (NNT) - The Cabinet has agreed to postpone one-million-baht deposit protection by four more years. An executive of Bangkok Bank voiced his support for the Cabinet’s resolution, saying it will make people feel more confident in the financial institution system.

Speaking about the postponement of the deposit protection, Bangkok Bank President Chartsiri Sophonpanich said Bangkok Bank had been prepared for the deposit protection but it would follow the government’s policy on the matter. The banker also expressed his confidence that there will be no problem when the deposit protection measure becomes effective in 2020.

CEO of The Siam Commercial Bank (SCB) Mr.Arthid Nanthawithaya said he believed that the deposit protection extension would have no impact on commercial banks, especially large banks which had already prepared for the deposit protection. Therefore, it would not affect the confidence of bank depositors as well as financial institutions.

KBank President Kattiya Indaravijaya said the extension was conducive to current economic conditions. Not only it would help boost confidence of depositors and investors, it would give them more time to diversify their investment.

-- NNT 2016-04-28

[KhunOr]

This is potentially very significant news. Unfortunately the wording in this announcement is unclear.

Deposit guarantees at Thai banks are currently 25 million baht and this compares with 100,000 Euro in Europe and 75,000 pounds in the UK, for example. So it is comparatively high. That fact, plus the fact that deposit interest rates are also comparatively high presumably encourages plenty of foreign inflows.

The guarantee was due to drop to 1 million baht on 10 August 2016. In fact it was originally scheduled to drop to 1 million baht in August 2012 but was postponed then.

Seems that the BOT have decided to postpone yet again. But will the guarantee remain at 25 million?

That would be great news for anyone here with much more than 1 million baht on deposit.

[jpinx]

Clear as mud The lack of a clear explanation of the policy and it's implementation will work against confidence in Thai banks.

[Baerboxer]

Clear as mud The lack of a clear explanation of the policy and it's implementation will work against confidence in Thai banks.

Read the first paragraph slowly, maybe at the speed of a sloth. Now, if you still experience comprehension issues seek help.

The clue - they are going to postpone changes for another 4 years again, as they did in 2012.

[jpinx]

Clear as mud The lack of a clear explanation of the policy and it's implementation will work against confidence in Thai banks.

Read the first paragraph slowly, maybe at the speed of a sloth. Now, if you still experience comprehension issues seek help.

The clue - they are going to postpone changes for another 4 years again, as they did in 2012.

Sarcasm is the lowest form of wit. They have not explained the policy change in detail - only idle political promises (again). The original 25million guarantee is too high for an economy like Thailand, compared to what UK, EU, etc guarantee. It's probably an empty guarantee really, since there is no way they have the reserves to cover it. As usual - people take from these pronouncements what they like to hear, but the fact is that the powers-that-be can easily make another pronouncement tomorrow.............

[Baerboxer]

Clear as mud The lack of a clear explanation of the policy and it's implementation will work against confidence in Thai banks.

Read the first paragraph slowly, maybe at the speed of a sloth. Now, if you still experience comprehension issues seek help.

The clue - they are going to postpone changes for another 4 years again, as they did in 2012.

Sarcasm is the lowest form of wit. They have not explained the policy change in detail - only idle political promises (again). The original 25million guarantee is too high for an economy like Thailand, compared to what UK, EU, etc guarantee. It's probably an empty guarantee really, since there is no way they have the reserves to cover it. As usual - people take from these pronouncements what they like to hear, but the fact is that the powers-that-be can easily make another pronouncement tomorrow.............

Sarcasm is the lowest form of wit - who says I was joking?

The UK has lowered it's deposit protection requirements. Who says the UK and EU have got it right, have the interests of depositors at heart or give a shit about their citizens. If thing go belly up in the banks again the UK government will help itself to your savings, as other EU governments will to their citizens.

News flash - just watch the UK and EU change the rules whenever they like too.

At least here, at the moment the protection hasn't been lowered and the intention to lower it deferred for another 4 years.

[jpinx]

Clear as mud The lack of a clear explanation of the policy and it's implementation will work against confidence in Thai banks.

Read the first paragraph slowly, maybe at the speed of a sloth. Now, if you still experience comprehension issues seek help.

The clue - they are going to postpone changes for another 4 years again, as they did in 2012.

Sarcasm is the lowest form of wit. They have not explained the policy change in detail - only idle political promises (again). The original 25million guarantee is too high for an economy like Thailand, compared to what UK, EU, etc guarantee. It's probably an empty guarantee really, since there is no way they have the reserves to cover it. As usual - people take from these pronouncements what they like to hear, but the fact is that the powers-that-be can easily make another pronouncement tomorrow.............

Sarcasm is the lowest form of wit - who says I was joking?

The UK has lowered it's deposit protection requirements. Who says the UK and EU have got it right, have the interests of depositors at heart or give a shit about their citizens. If thing go belly up in the banks again the UK government will help itself to your savings, as other EU governments will to their citizens.

News flash - just watch the UK and EU change the rules whenever they like too.

At least here, at the moment the protection hasn't been lowered and the intention to lower it deferred for another 4 years.

waffle waffle It's all double-speak anyway. Personally I would not trust a politician as far as I could throw him, and banks are a necessary evil, but ultimately controlled by government regulations. This applies in most countries.

[Srikcir]

the deposit protection measure becomes effective in 2020

An admitedly unpopular measure with depositors that will be delayed into the next elected government (assuming the next coup doesn't occur before 2020).

Clever political poison pill.

[chicowoodduck]

Just another reason why I do not keep any large amounts of my money here in LOS....simple....?