banks aren't guaranteeing deposits

[silicastorm 9]

I have seen comments in several posts in TV about “banks aren't guaranteeing deposits in excess of 1 million baht”

 

can someone explain or provide more information regarding this statement?

 

thanks for clarification 

[ukrules 20,943]

I believe this has been delayed.

 

It's deposit insurance. If they go bankrupt then you get a maximum of 1 million Baht back via the insurance scheme.

 

If you have a balance of 10 million then you get 1 million, it's as simple as that.

 

Why have they been reducing this coverage in stages over the years is the real question here......?

[EricTh 2,909]

18 minutes ago, ukrules said:

I believe this has been delayed.

 

It's deposit insurance. If they go bankrupt then you get a maximum of 1 million Baht back via the insurance scheme.

 

If you have a balance of 10 million then you get 1 million, it's as simple as that.

 

Why have they been reducing this coverage in stages over the years is the real question here......?

 

It's not really a mystery because in the past, many foreigners transfer tons of money into Thailand driving up the value of the Baht.

 

If the Baht goes up, then economy of Thailand will go down....

 

[Pib 14,265]

 

http://www.dpa.or.th/en/articles/view/protection-limit

[scammed 1,765]

55 minutes ago, EricTh said:

If the Baht goes up, then economy of Thailand will go down....

is the same statement valid for great britain

[silicastorm 9]

1 hour ago, ukrules said:

Why have they been reducing this coverage in stages over the years is the real question here......?

YES!

 

Why would they reduce the protection coverage for foreign investors in Thai banks...? 

 

 

[baansgr 9,671]

9 minutes ago, silicastorm said:

YES!

 

Why would they reduce the protection coverage for foreign investors in Thai banks...? 

 

 

It's Thai citizens also....

[VBF 2,395]

Presumably, it's 1 mil per institution ie 1 mil with SCB + 1 mil with Kasikorn etc.? If so possible to mitigate some risk that way.

 

Sorry for Thai people who have no choice, but really any foreigner who keeps lots of dosh in what is still, essentially a 3rd world banking system isn't very smart. Having seen the pitiful security, both personal and electronic practised in Thailand I don't think I'd keep any more than essential even if i did live there.

 

Especially seeing how easy it is today to transfer from a better-protected account Eg UK is  £85K per institution - approx 3,655,000 Baht. I presume the interest rates in Thailand are as pathetically low as other countries - I haven't bothered to look as it doesn't affect me.

[superatoz 48]

thats why i rarely transfer big amts unless im buying something of high value 

, dont trust their banking systems

[Ron jeremy 2,151]

Anyone keeping large sums of money in Thailand is nothing short of an idiot.

[david555 5,733]

This was the original climbdown from 15 million baht deposit guarantee to 1 mill., but the last step seems to be postponed …(?)

[Mike Teavee 1,805]

4 hours ago, silicastorm said:

I have seen comments in several posts in TV about “banks aren't guaranteeing deposits in excess of 1 million baht”

 

can someone explain or provide more information regarding this statement?

 

thanks for clarification 

It could be the fact that FCD (Foreign Currency Deposits) are not covered by the Deposit Guarantee (only Thai Baht accounts are covered up to a maximum value of £ 5Million THB until August 2021 when it is scheduled to be reduced to 1 Million). 

 

 

[eppic 189]

US FDIC guarantee is currently US$250k per customer/ institution or $500K for a joint account.

 

Singapore insures only up to SG$75k (US$55k, THB 1.7million) per customer per institution.

 

So Thailand currently at THB5 million or about US$160k, which is actually quite generous.  Honestly, given the relative wealth of the countries it's no surprise that Thailand would reduce the number, and in fact 1 million (US$32k) still seems pretty reasonable in comparison.

Edited October 17, 2020 by eppic

[gentlemanjackdarby 235]

7 hours ago, ukrules said:

I believe this has been delayed.

 

It's deposit insurance. If they go bankrupt then you get a maximum of 1 million Baht back via the insurance scheme.

 

If you have a balance of 10 million then you get 1 million, it's as simple as that.

 

Why have they been reducing this coverage in stages over the years is the real question here......?

Not much of a question, really

 

I went a few rounds with one of the broke <deleted> e-begging Youtubers over this a couple of years ago:

 

It all boils down to the strength of the country's banking system - strong banking systems, such as the U.S., in conjunctions with their central banks, will do what is necessary to ensure that their depositors and other market participants don't lose faith in the markets and that they continue to participate, with most knowing that their assets are ultimately safe if they don't make bone-headed plays

 

If that means setting the amount of FDIC deposit insurance above the usual USD 250K (about THB 7.9 million) to no limit, as was done in the wake of the 2008 instability, then it will be done; as well, if it means making a market in securities when other primary market makers can't or won't (such as was done earlier this year in U.S. Treasuries market when the Wu-Flu Panic grabbed too many people by the short-and-curlies), it will be done

 

The end result is that (much) sooner, as in the case of the Wu-Flu Panic, in which their were no financial system structural distortions to eliminate, or later, as in the case of the 2008 instability in which structural distortions had to be eliminated, the markets right themselves, some folks make money and some folks lose money, and life goes on

[ChakaKhan 2,948]

5 hours ago, VBF said:

Presumably, it's 1 mil per institution ie 1 mil with SCB + 1 mil with Kasikorn etc.? If so possible to mitigate some risk that way.

 

Sorry for Thai people who have no choice, but really any foreigner who keeps lots of dosh in what is still, essentially a 3rd world banking system isn't very smart. Having seen the pitiful security, both personal and electronic practised in Thailand I don't think I'd keep any more than essential even if i did live there.

 

Especially seeing how easy it is today to transfer from a better-protected account Eg UK is  £85K per institution - approx 3,655,000 Baht. I presume the interest rates in Thailand are as pathetically low as other countries - I haven't bothered to look as it doesn't affect me.

But my dosh keeps the Mrs... Posh!