Cabinet approved extension of THB50mil deposit protection by 3 more years


BANGKOK, 27 June 2012  – The Cabinet has agreed to continue the state-initiated deposit protection plan for depositors until 2015. 

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said on Tuesday that the Cabinet has resolved to approve the Deposit Protection Agency (DPA) to continue the protection service for depositors for 3 more years, or until 2015.

Under the DPA service, the protection is provided for the maximum amount of 50 million baht per account.

The protected amount is originally due to be adjusted down to 1 million baht per account after August 11th this year, in order to allow a level ground for competition among private banks and financial institutions.

Mr. Kittiratt said that the extension of the protection service is also needed to boost the confidence of depositors in Thai financial institutions while the debt crisis in Europe remains unresolved.

He added that the maximum protected amount will be lowered to 25 million baht after 2015, and gradually adjusted down to 1 million baht as originally planned later.