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The recent collapse of Silicon Valley Bank (SVB) in the United States has triggered concerns about the safety of money in banks, with customers in Thailand wondering whether their cash is safe and whether they should withdraw it. While Thailand’s Finance Minister Arkhom Termpittayapaisith insists that the troubles faced by some major US banks have …

The story US banking collapse has Thailand customers asking, is my money safe? as seen on Thaiger News.

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This story doesn't address the issues that Thai depositors have.

Sure, if you have a US account your money is insured up to $250,000.  Are there many Thais in this situation?  Is that the concern they are expressing?

Doubtful.  They want to know if this is the first drop in a storm of banking failures that would affect their Thai bank accounts.  How about finishing the story with the information that Thai banking customers are asking about? Are their accounts insure? For how much if they are? Are there any restrictions or clauses depositors need to be aware of? 

This is Thailand, after all.

Someone didn't finish the story.


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As a former bank executive at more than one major bank, the FDIC or FSLIC insurance means that if an individual bank or a small number of banks were to fail, depositors would receive their money up to the insurance limits.  In many cases to prevent panic the government steps in and guarantees all deposits.

Now if all of the banks in the USA were to fail such as what pretty much happened in the 1920's there are approximately $18 to $20 trillion in bank deposits.   The insurance funds do not have that sort of reserve by a long shot. 

Now could they "pay" you everything.  Sure, they just open the printing presses and put pictures of dead presidents on paper.  Now what that money would ultimately be worth on the open market is subject to speculation.  The U.S. dollar has "perceived value"  What it would be worth if that perception was damaged is anyones guess.   Germany and Venezuela have historical examples of currency becoming worthless once it loses it perceived value.  

That is why in times of financial uncertainty tangible assets such as gold rise in value because those assets would rise both from the uncertainty and be re-priced for any inflationary effects cause by the government debasing its currency. 

There is no such thing as "safe"  There are only degrees of safety.  Diversification is the only way to reduce the risk.  Mind you that is limiting not eliminating the risk.  

If one was concerned about bank deposits they should spread them both between different financial institutions and different countries. 

In the event of a world wide collapse even those would be impacted. 


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There was no banking collapse. A bank failed, but the US regulatory system responded and ALL depositors will be made hold, including those who had more than the insured $250,000 limit. Thailand  probably would not be as helpful as the US government was, so yes Thai depositors should be concerned.

The Credit Suisse collapse is more prophetic. The Swiss government will backstop the UBS purchase of the failed company, but the world's most important central banks ( U.S. Federal Reserve, European Central Bank, Bank of Canada, Bank of England, Bank of Japan) have acted to support the Bank of Switzerland stabilize  the Swiss and international banking system. In the event Thailand needed similar support, I doubt these countries  would be so quick to assist. Thailand would have to look to its economic  riends Russia and China for a bail out, and as we know those two countries rarely help anyone unless there is an immediate gain for themselves.

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On 3/16/2023 at 8:39 PM, MrStretch said:

Are their accounts insure? For how much if they are? Are there any restrictions or clauses depositors need to be aware of? 

Very much doubt any Thai Bank would have a clue what you are talking about. 🥴

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13 minutes ago, palooka said:

Very much doubt any Thai Bank would have a clue what you are talking about. 🥴

Amazingly, they do.

"If a member financial institution’s license is revoked, depositors of that institution will receive their deposits from the Deposit Protection Agency up to the coverage limit. The coverage is based on a per depositor per institution basis (not one account per institution), meaning that depositors with multiple accounts across all branches of that institution will have those deposits - both principal and interest - aggregated into a single amount.

The current coverage limit is 1 million baht." - The Deposit Protection Agency


They even make the recommendation that spreading deposits over several different institutions is a way to increase deposit coverage.

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16 minutes ago, MrStretch said:

O-A long stay retirement visas are not Resident Visas in the true sense of the term. 

 O-A visa not a Resident Visa, it is not covered under that part of the Immigration Act, Permanent Residence in Thailand is what it is, it is Permanent Residence. You can get that, it is like Green Card status in a way where once it is issued you don't get visas anymore if you don't want to. You are just in Thailand presumably in perpetuity. Different than this LTR scheme, this LTR scheme is a Non-immigrant scheme; it does issue 10 year visas but it is a Non-immigrant scheme at the end of the day.

If you apply this to the DPA interpretation ref deposits, bye bye suckers. ie you've done your money. 🥴

Unless it is in your wifes name. Bit hard for the 400 - 800,000 required deposit for visa.

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