Bank deposit insurance coverage in Thailand extended for 3 years

BANGKOK, July 4 (TNA) - Bank deposit insurance at 50 million baht per account has been extended for another three years due to volatility in the global financial markets, especially debt crisis in Europe, said Singha Nikornpun, director of Deposit Protection Agency, on Wednesday. He said the extension of the deposit protection coverage is carried out like several other countries on the back of uncertainty in global economy. Any changes on the bank deposit insurance to 25 million baht or one million baht per account would be reviewed later, Singha said. If the government wants to maintain bank deposit insurance at not exceeding 50 million baht per account on a permanent basis, the law must be amended because it specifies that protection would not exceed one million baht per account, he said. Current deposit protection coverage at the amount of the maximum of 50 million baht per account covers 99.98 per cent of total depositors, or an equivalent of 77 per cent of deposit base of Thai financial system. The Deposit Protection Agency was created in the aftermath of the 1997 financial crisis, originated from Thailand, to set a clear limit on the protection depositors can expect in the event of a bank failure. (TNA)