Jump to content

Foreign property owners now allowed to return to Thailand


Recommended Posts

39 minutes ago, Banana7 said:

Big problems are coming.

 

Bank and finance company NPLs are rising because BOT's debt suspension scheme ends Oct. 22. This scheme avoided classifying true NPLs as a NPL. One bank reported loans 1-3 months behind in payment are now at 7-8 per cent, normally at 3%. This bank foresees lots more NPLs, and needs to more tier 1 capital so it is issuing USD$500 million in perpetual bonds on Oct. 14, yield 5-6%. One of the conditions on the bonds is that they cannot be repaid within 5 years. Other banks will be following this pattern. Another way banks could increase tier 1, is to issue shares, but their prices are depressed because of the NPLs, and forecast of reduced profits.

 

Estimates are as high as 40% of loans will become non-performing, which equates to about 2 trillion baht. 40% of all loans were registered in BOT's debt suspension scheme! Lots of banks and finance companies will be looking for capital/cash to stay alive. They will have to go to foreign currencies/markets to get that enormous amount of capital.

 

So what's your point? I wouldn't worry about it unless I was a shareholder in the banks and my dividend was in danger of being cut.

  • Like 1
  • Sad 1
Link to post
Share on other sites
  • Replies 521
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

Farookin' ridiculous! Three million Baht earning 0.1% in a Thai bank plus another half million doing nothing in your home country - just how anxious do they think people are? Expect a lot more co

So punters drop eg 5 to 15 million baht on a home and now need to show 3 million to use it   Sounds fair 

Let's face it...this is just another step on the road to clearing out foreigners (apart from their brothers and sisters in China).......It is all part of going down the (silk) road to become the next

Posted Images

If I where running Thailand I personally wouldnt want anyone visiting right now, and this policy essentially prevents anyone visiting for at least 6 months, so job done of appearing open but remaining closed

  • Like 2
  • Sad 2
Link to post
Share on other sites
1 hour ago, Banana7 said:

Big problems are coming.

 

Bank and finance company NPLs are rising because BOT's debt suspension scheme ends Oct. 22. This scheme avoided classifying true NPLs as a NPL. One bank reported loans 1-3 months behind in payment are now at 7-8 per cent, normally at 3%. This bank foresees lots more NPLs, and needs to more tier 1 capital so it is issuing USD$500 million in perpetual bonds on Oct. 14, yield 5-6%. One of the conditions on the bonds is that they cannot be repaid within 5 years. Other banks will be following this pattern. Another way banks could increase tier 1, is to issue shares, but their prices are depressed because of the NPLs, and forecast of reduced profits.

 

Estimates are as high as 40% of loans will become non-performing, which equates to about 2 trillion baht. 40% of all loans were registered in BOT's debt suspension scheme! Lots of banks and finance companies will be looking for capital/cash to stay alive. They will have to go to foreign currencies/markets to get that enormous amount of capital.

 

It is actually 20% of the 40%, which will add up to 2 trillion baht when including the current level of NPL.

 

"Further, an estimation previously pointed out that 20 per cent of registered debt would become NPL in the future. This will increase the total NPL from Bt500 billion to Bt2 trillion, which will be like the total NPL in 1997."

Link to post
Share on other sites
5 hours ago, A512 said:

perhaps they want use the money without the person'$ cob$ent 

In a sense they do, it's invested by the bank to make money while giving the depositor almost zero.

3 million baht that the person cannot use.

  • Like 2
Link to post
Share on other sites
46 minutes ago, Banana7 said:

Dividends have been suspended. BOT has forbidden Thai banks paying a dividend and share buybacks.

 

My points are:

1. There will be lots of borrowing in foreign currency denominated instruments by banks and finance companies, and some may not be able to obtain the necessary capital to avoid bankruptcy.

2. NPL foreclosure rate should accelerate, at least double, in the next few months. Lots of assets will be sold, depressing market prices.

3. The 3 million baht deposit scheme, mentioned in the first post, seems to be a way to enhance bank and government liquid capital, to help reduce borrowing.

1. The Bank of Thailand will provide whatever baht liquidity banks require to shore up their capital if necessary. (Thailand has its own currency so can easily do this.) As I have also explained, even when banks go "bankrupt," it's the shareholders, not depositors, who bear the loss. The banking authorities merge weak banks into stronger ones and depositors notice no change. 

 

2. Good...there will be lots of cheap businesses, houses, and condos for those with capital to invest.

 

3. I doubt the deposits of a few hundred (thousand) property owners who take advantage of this scheme will enhance Thai bank or government capital levels. (Certainly not the government’s because (1) its not going to them and (2) they can just print more baht if they need it.) And anyone who thinks this is the purpose of the 3M requirement is a bit daft in my opinion.

  • Like 1
  • Sad 2
Link to post
Share on other sites
4 minutes ago, Pattaya Spotter said:

As I have also explained, even when banks go "bankrupt," it's the shareholders, not depositors, who bear the loss

The banks are only good for 1 million Baht.......aren't they?

 

Deposits are not fully covered....no bank would do that.

  • Like 1
Link to post
Share on other sites
5 minutes ago, Surelynot said:

The banks are only good for 1 million Baht.......aren't they?

 

Deposits are not fully covered....no bank would do that.

I don't know the current Thai bank deposit insurance amounts...but whatever they are, I'm way over it and don't loose any sleep. And yes, I know of no banking system where any deposit amount is fully insured.

  • Like 1
  • Sad 1
Link to post
Share on other sites
On 10/10/2020 at 10:30 AM, Airalee said:

Only a complete financial illiterate would put 3 million baht into a Thai bank when the deposit protection drops to ONE million baht next year.  

i am sure i have read somewher on the Bangkok Bank website that foreigners get NO deposit protection

correct me if i am wrong,i will try to dig it out.

Link to post
Share on other sites
5 minutes ago, Hindy said:

i am sure i have read somewher on the Bangkok Bank website that foreigners get NO deposit protection

correct me if i am wrong,i will try to dig it out.

From what I can find....

 

“For protection, deposits need to be in Thai baht (foreign currency accounts are not covered), held in an account in Thailand, and reportedly also deposits in baht by depositors residing outside Thailand are excluded.“
 

https://www.thaiwebsites.com/deposits-insurance.asp
 

Nothing I can find says foreigners are excluded.  I believe you may have been thinking about “foreign currency accounts”.  If you find something to the contrary, please post it here with a link.  Thanks.

  • Like 1
Link to post
Share on other sites
9 minutes ago, Hindy said:

i am sure i have read somewher on the Bangkok Bank website that foreigners get NO deposit protection

correct me if i am wrong,i will try to dig it out.

From Bangkok Banks website...

 

 

7FBFD866-BB3F-402E-8ADB-ABB311188A99.png

Link to post
Share on other sites
2 hours ago, Pattaya Spotter said:

I don't know the current Thai bank deposit insurance amounts...but whatever they are, I'm way over it and don't loose any sleep. And yes, I know of no banking system where any deposit amount is fully insured.

Current limit is 5Million THB across all accounts with a single bank, it was supposed to drop to 1Million last August but this was pushed back to August 2021. 

 

 

  • Like 1
Link to post
Share on other sites
58 minutes ago, Mike Teavee said:

Current limit is 5Million THB across all accounts with a single bank, it was supposed to drop to 1Million last August but this was pushed back to August 2021. 

 

 

I've got to do some account spreading 😁😁😁

Edited by Pattaya Spotter
  • Haha 1
Link to post
Share on other sites
3 hours ago, Airalee said:

From what I can find....

 

“For protection, deposits need to be in Thai baht (foreign currency accounts are not covered), held in an account in Thailand, and reportedly also deposits in baht by depositors residing outside Thailand are excluded.“
 

https://www.thaiwebsites.com/deposits-insurance.asp
 

Nothing I can find says foreigners are excluded.  I believe you may have been thinking about “foreign currency accounts”.  If you find something to the contrary, please post it here with a link.  Thanks.

yes you are right ,it is my foreign currency account i am not protected for

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    No registered users viewing this page.


×
×
  • Create New...