Thai Bank depositor protection cuts announced...

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travelerjim1
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Thai Bank depositor protection cuts announced...

Post by travelerjim1 » Sun Aug 11, 2019 10:38 am

Bank depositor protection cut to Bt5 million...
Then again to 1.million in 2020.

The period of protection will last until August 10, 2020 after which the coverage amounts will be reduced to Bt1 million.

https://www.nationthailand.com/business/30374582

Tj

Dodger
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Re: Thai Bank depositor protection cuts announced...

Post by Dodger » Sun Aug 11, 2019 3:31 pm

Thanks Jim,

I guess that means we shouldn't keep over 1 million THB in any one bank account in Thailand after August 2020.

Am I reading this right?

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Re: Thai Bank depositor protection cuts announced...

Post by fountainhall » Sun Aug 11, 2019 4:19 pm

Not so easy for those renewing via the Bt. 800,000 route. Unless you have a second account, you have Bt. 200,000 to live off for 5 months.

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mahjongguy
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Re: Thai Bank depositor protection cuts announced...

Post by mahjongguy » Sun Aug 11, 2019 4:20 pm

Well, to be more precise, it means you might not want to keep more than 1 million THB in any one bank (not bank account).

The Nation's reporter incorrectly said "per account per financial institution". Should have written per account holder or per depositor.

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Jun
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Re: Thai Bank depositor protection cuts announced...

Post by Jun » Sun Aug 11, 2019 4:30 pm

If the big Thai banks are subject to runs with people queuing in the streets to get their money back, expect rapid increases in the protection.

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mahjongguy
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Re: Thai Bank depositor protection cuts announced...

Post by mahjongguy » Sun Aug 11, 2019 5:05 pm

Many interpret this action as a sign of government confidence in the Thai banking system.

The BOT wants to use some of the money set aside to cover the insurance to instead repay debt still outstanding from the 1997 crisis.

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Bob
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Re: Thai Bank depositor protection cuts announced...

Post by Bob » Sun Aug 11, 2019 8:16 pm

The protections have been slated to go into effect for at least a decade and the government has kept postponing implementation. This is the first time in my memory that they've actually let the planned reductions in bank depositor protection actually take place.

I'm surprised that big business and the elites have allowed this reduction in protection to take place as government protection for only $150,000 seems rather low to me (not for us but a whole lot of outfits and the wealthy have much larger bank accounts than that). As to the planned reduction next year to a million baht (roughly $30,000), I'd bet it never happens.

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Re: Thai Bank depositor protection cuts announced...

Post by mahjongguy » Sun Aug 11, 2019 10:04 pm

Bob wrote:
Sun Aug 11, 2019 8:16 pm
I'm surprised that big business and the elites have allowed this reduction in protection to take place as government protection for only $150,000 seems rather low to me (not for us but a whole lot of outfits and the wealthy have much larger bank accounts than that). As to the planned reduction next year to a million baht (roughly $30,000), I'd bet it never happens.
- Wealthy people will benefit because this action will boost the stock market. If your extra cash isn't insured, may as well put it into play, although truly wealthy people have a big vault in their own basement.

- I agree, the odds are good that the final reduction to 1 million will be delayed.

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