Has A Thai Bank Ever Failed ?

[gawguy]

Okay...let me morph the subject a bit from my last post about SCBank.

 

During the Asian meltdown in 1997 did any banks fail? Did any Thai banks fail?

 

Also, in this crisis now, I heard a financial analyst comment that Asian banks did not have a lot of exposure to the sub-prime meltdown. Right now my cash is in BKK bank, the largest in Thailand. They would have to nationalize it before allowing it to fail, wouldn't they. They are already close to anarchy in BKK. A bank failure and "the barbarians would be at the gates." Yes?

 

Or is this another theory for which I won't get the Nobel Prize?

 

GG

[cavanami]

All bets are off when it comes to Thailand...IMO

 

What is logically and what happens, you can only say, TIT

[khun_khon_neua]

I think that in 1997 several banks and finance companies failed. I don't think any depositors lost money, but stockholders certainly did.

 

The most notable of these was the Bangkok Bank of Commerce and Finance One. The government poured a lot of money into trying to save the companies, particularly something like 15 finance companies, but in the end it was wasted money and most of them ended up failing anyway.

 

Several of the senior managers of the BBC have been convicted of various charges (it took some 10 years) and are serving sentences from 6-20 years.

 

[radioman]

Anybody happen to know what the deposit guarantee limit is in Thailand? 10,000 Baht?

 

 

[samak]

I don't think any depositors lost money, but stockholders certainly did.

The most notable of these was the Bangkok Bank of Commerce and Finance One.

are you sure about those statements?

as i recall, several smaller Banks were taken over by larger banks (Bangkok Bank of Commerce by Krung Thai) and others merged. they did not "fail"; i can't recall any bank that went bankrupt. however several Finance companies were closed and of those not only the shareholders lost money. The Finance companies were not doing any retail banking but of course they also had lenders, who lost money.

 

[khun_khon_neua]

You are right, that BBC did not technically go bankrupt and finance companies were a much worst problem then the bank. As you say, there was never bankruptcy proceedings filed, so you could say it do not fail.

The finance companies loaned out borrowed money (often USD borrowed overseas) which is why when the baht collasped, they failed.

If you know any depositors in Thai banks that lost money in 1997, please post a link.

[Flashermac]

Anybody happen to know what the deposit guarantee limit is in Thailand? 10,000 Baht?

 

 

 

 

The Nation

25 Jul 2008

 

 

<< On August 11, the Deposit Protection Act will be implemented.

 

Deposits of commercial banks now are 100-per-cent protected by the government in case a bank's business license is cancelled or if it goes bankrupt.

 

But after the new act takes effect, the protection on deposits will be gradually decreased from 100 per cent in the first year to only Bt100 million per person per bank in the second year, Bt50 million in the third year, and Bt10 million in the fourth year.

 

[color:red]From the fifth year onwards, or after August 11, 2012, the deposit guarantee will be reduced to only Bt1 million per person per bank.[/color]

 

Therefore, depositors who have more than Bt1 million in a bank will be affected and may have to think about diversifying their investments. >>