Bank Safety - Are They Insured?

[yankee-expat]

Are deposits protected in Thailand as they are in other countries? What happens in the bank becomes insolvent?

[Heng]

Not officially protected FDIC (US) style, although I can say that in the two banks that we did have substantial deposits in (both savings and fixed deposits) that "failed" during the 97-98 crash: Bangkok Metropolitan Bank and First Bangkok City Bank, we didn't lose any funds and weren't penalized for liquidating our fixed deposits (months and years ahead of their terms). It took about 3-4 business days to take care of everything. It was rather calm and orderly. Nothing like a Texas style bank insolvency (which our family has seen as well: M Bank Texas in the 80's).

We were told by both banks that all accounts would be automatically transferred to another bank (which turned out to be true; Krungthai for First Bangkok account holders... don't remember which was the case for Bangkok Metro), but we obviously didn't buy into that at the time and cashed out and moved funds over to our existing accounts at the big-4: BBL, TFB (KBank), SCB, and Krungsri.

[jumnien]

Yes, bank deposits in Thailand are fully insured, but in sort of a "buddhist" insurance way that incorporates impermanence, suffering, and no real self. OK, I apologize - it's time to go to bed.

[fxm88]

See also: http://www.thaivisa.com/forum/index.php?showtopic=74383