Guest Posted September 24, 2001 Report Share Posted September 24, 2001 Does Thailand have any equivalent to government deposit insurance or can you lose all your money if a bank fails here? Link to comment Share on other sites More sharing options...
Guest Posted September 25, 2001 Report Share Posted September 25, 2001 Hi All bank deposits are unofficially covered by the government. During the crash of 1998 3 or 4 banks went broke, no one lost anything, all the outstanding loans got transfered too. The downside is, although it is tacitly understood that deposits are "covered" nothing is written down. Prudence would suggest "Don't put all your eggs in one basket" is a good thing to remember. Link to comment Share on other sites More sharing options...
Guest Posted October 8, 2001 Report Share Posted October 8, 2001 All-- I understand that the BOT (Bank of Thailand) which by US standards is the US Federal Reserve Bank, does MORALLY guarantee all Thai Financial Institutions... However, unlike in the US there is no formal commitment (in writing) to this effect. The upside, Thailand (by comparision with other ASEAN countries) is not known for having bank failures and the BOT does indeed monitor Thai banks operating capital ratios and bad debt reserves. --UPSer Link to comment Share on other sites More sharing options...
Guest Posted October 8, 2001 Report Share Posted October 8, 2001 written by UPSer "The upside, Thailand (by comparision with other ASEAN countries) is not known for having bank failures and the BOT does indeed monitor Thai banks operating capital ratios and bad debt reserves." boy, that's some statement- thailand has had more finance companies and banks fail since 1997 than any other asian country i can think of- although the government has bailed out depositers in the past it is under no obligation to do so- shareholders in many cases ended up with nothing- it'd be interesting to see what they would do if bbl and tfb failed- currently the finance ministry is drawing up a depositor's insurance plan similar to the usa's fdic insurance- it will have a cap on insured deposits Link to comment Share on other sites More sharing options...
Guest Posted October 9, 2001 Report Share Posted October 9, 2001 tanha -- You're right.. it is some statement.. While Thailand has had their share of public bank failures, it is very rare for any depositer (not talking about shareholders) to have suffered losses... The introduction of a formal state (government-run) insurance program for public bank deposits will only help improve the perception of thai banks... not a bad move. Deposit caps are also the norm. For example, the US cap is $100K per depositer, per insitiution. --UPSer Link to comment Share on other sites More sharing options...
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