Thailand's reduction in bank deposit protection does not imply that the country is about to collapse

The maximum deposit protection in individual Thai bank accounts is being cut from 5 million baht to one million baht, or approximately 22,000 British pounds, as on August 11. Inevitably, this has sparked a social media frenzy among overseas retirees and others concerned that their cash accounts may vanish overnight, or that the Thai banking system as a whole may be in jeopardy. It's best to relax.


The Deposit Protection Act of 2008 was enacted in the aftermath of the 2008 global financial crisis. Over the years, the quantities protected were gradually reduced until they reached five million baht. The Thai Cabinet then declared in April 2020 that the one million restriction would take effect in August 2021. According to Kasikorn Research Center, this still represents 98.03 percent of total depositors participating in 35 financial institutions.


It is necessary to make comparisons with other countries.
There isn't a consistent trend.
Cambodia currently lacks regulated deposit protection, whereas the Philippines protects most accounts for 500,000 pesos (about 7,000 pounds).
The highest limit in the UK mainland is 85,000 pounds, but it is 50,000 pounds in the Isle of Man and the Channel Islands, where most British expats have been pushed to lodge their accounts in recent years. The maximum amount of money that can be protected in the EU is 100,000 euros.

deposit protectionThailandThai bank accounts