Thread: Security of Banks in Thailand

Does anyone know what level of government guarantee - if any - there is on money deposited in Thai banks? I have a vague recollection of seeing something that said deposits up to 5 million baht were guaranteed but I don't know if - in a fit of wishful thinking - I didn't just make that up myself.

Interesting question. I hope someone knows.

" The maximum coverage is 1 million baht per depositor per institution"

Much more info here link

The DPA covers both Thai and foreign depositors who have deposit accounts in a financial institution registered in Thailand.

Deposit accounts include current, savings and fixed accounts, but not nonresident baht accounts.

Being entitled to something in Thailand and actually receiving it are two entirely separare issues.

Thai bank accounts should be viewed as high risk investments.

Cheers for the information.

I've been told that Thai money is actually backed by Gold... it was a Thai conversation... and I can hold my own, but it gets tough when we start talking economics and stuff

Anyway, sounded like there was a senior Monk from Udon who, after the baht got seriously devalued some 20 or 30 years ago collected enough Gold to back up the Thai printed money. He then threatened to curse any government person/persons who dipped into that reserve.

Does anybody know anything about that? If that's true, than Thai money might be safer than that fiat based American money? Right? (Once again, I'm out of my intellectual league on this one)

Originally Posted by theudonshawn

Anyway, sounded like there was a senior Monk from Udon who, after the baht got seriously devalued some 20 or 30 years ago collected enough Gold to back up the Thai printed money

Thailands cash does not have the backing of gold, not since May 11, 1932, anyway.

How about the strength of individual banks...which is the strongest.

How is Bangkok Bank rated.

Which bank does the King banks with, heard he has a bit to do with one in particular....dont think they would ever let his bank fall over.

Not sure I'd trust the Thai banking system with re-paying a falang, after a bank falls over. As per usual, I'd imagine the falang would stand a very long way back, in a very, very, very long queue.

Originally Posted by theudonshawn

I've been told that Thai money is actually backed by Gold... it was a Thai conversation... and I can hold my own, but it gets tough when we start talking economics and stuff

Anyway, sounded like there was a senior Monk from Udon who, after the baht got seriously devalued some 20 or 30 years ago collected enough Gold to back up the Thai printed money. He then threatened to curse any government person/persons who dipped into that reserve.

Does anybody know anything about that? If that's true, than Thai money might be safer than that fiat based American money? Right? (Once again, I'm out of my intellectual league on this one)

If it's the story I'm thinking of, it was 1997-98 when everyone donated gold to a temple to try and get the monkey of IMF off their backs

Originally Posted by Dan

Does anyone know what level of government guarantee - if any - there is on money deposited in Thai banks?

Hilarious.

Originally Posted by watterinja

Not sure I'd trust the Thai banking system

I've amended that for you.

Originally Posted by Nawty

Which bank does the King banks with, heard he has a bit to do with one in particular

The CPB is a major shareholder in SCB.

In '97 during the financial crisis, the CPB forced the government to inject a billion US$ into that bank, effectively saving it.

Originally Posted by watterinja

Not sure I'd trust the Thai banking system with re-paying a falang, after a bank falls over. As per usual, I'd imagine the falang would stand a very long way back, in a very, very, very long queue.

Yes ,precisely.

I expect there would be forms to complete, in Thai, but nobody knows where to get them from, and that the depositor would be expected to provide four copies of all bank statements, signed, plus two photographs of himself, his parents and grandparents.

^ ...all holding the bank books in front of his residency in Thailand of course.

I've got about 2 grand in Kasikorn. As a farang i reckon i would have little chance of getting any of it back if the bank fails,. I'll clear it out at christmas me thinks

I'm sure they'll miss your 2000baht, withdrawing it may bring the bank down.

Which bank does Taxin own ? If the push comes to the shove they'll save the one that belongs to who'ever is top dog at the time.

I will continue to only have the minimum amounts deposited and just enough to be able to maintain a Thai Bank account.

Would not trust any bank at the moment (with my money) and as far as I could throw them.

IMO get the money out of the bank and into something that will earn you at least as much return as what the banks will offer. (Real Estate for example)

Originally Posted by Loy Toy

I will continue to only have the minimum amounts deposited and just enough to be able to maintain a Thai Bank account.

Would not trust any bank at the moment (with my money) and as far as I could throw them.
IMO get the money out of the bank and into something that will earn you at least as much return as what the banks will offer. (Real Estate for example)

Or a Bar in Udon Thani

Originally Posted by EmperorTud

Give it at least a year or so at least until people are cutting their own throats to sell.

Didn't happen in 97 (a real estate rock bottom, fire sale sell off) and I don't expect it will happen now Tuddy.

The chinese here don't work that way and will hang onto their bricks and mortar and at any personal cost even in these rocky times.

Originally Posted by Udonite

Or a Bar in Udon Thani

Well errrrrrrr, hmmmmmmm Nooooooooo!

Originally Posted by Loy Toy

Didn't happen in 97 (a real estate rock bottom, fire sale sell off) and I don't expect it will happen now Tuddy.

I was talking about UK/Aus. I don't invest in Thai real estate. I want to make money and on assets I can actually own and have definable rights to.
I thought that was pretty clear from my post.

I have decided to put all business plans on hold in Thailand and I will continue to rent. This country is on a downward spiral politically and economically and is yet to fully feel the ripple effect coming from the US.

Originally Posted by Loy Toy

The chinese here don't work that way and will hang onto their bricks and mortar and at any personal cost even in these rocky times.

This is a whole different ballgame from '97 and the Thai real estate market is due for a major correction and downward trend. It's been treading water for years anyway and is now pretty much stagnant.

You can kid yourself on that it's not going to happen here but all housing markets are susceptible at the moment. Thailand more so I believe.

I would imagine the coastal areas such as Pattaya and Hua Hin to be the worst affected areas as belt tightening tends toward property purchases out of necessity rather than investment or second and holiday homes.

This year will see further reductions in visitors and investments from Western countries due to the economic crisis as well as the strength of the Baht, rising fuel costs and political uncertainty.

I would get out intact rather than invest as I said. You've still got time to do so unless you're well dug in, in which case you better hope for the best and prepare for the absolute worst.

Originally Posted by Nawty

How about the strength of individual banks...which is the strongest.

How is Bangkok Bank rated.

Which bank does the King banks with, heard he has a bit to do with one in particular....dont think they would ever let his bank fall over.

Siam Commercial Bank.