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Legal Update

Extension of 100% Bank Deposit Protection

5 November 2008
Mayer Brown JSM Legal Update

Due to the current global economic crisis, the Cabinet approved on 28 October 2008 a draft Royal Decree which will extend the 100% state guarantee on bank deposits until 10 August 2011.

Full Update

The Institute of Deposit Protection Act (the "Act"), effective last August, prescribed the decrease of state guarantee of bank deposits from full amount to THB 1 million as outlined in our previous Client Alert entitled "New Move in Deposit Protection."

Section 72 of the Act however grants Thailand the right to increase the prescribed coverage in case of significant change in the economy and financial system.

Below is a table comparing the deposit protection under the Act and the draft Royal Decree.


Protected Amount (under the Act)

Protected Amount (under the draft Royal Decree)

11 August 2008 – 10 August 2009

Full amount

Full amount

11 August 2009 – 10 August 2010

THB 100 million

Full amount

11 August 2010 – 10 August 2011

THB 50 million

Full amount

11 August 2011 – 10 August 2012

THB 10 million

THB 50 million

11 August 2012 onwards

THB 1 million

THB 1 million

The draft Royal Decree, which was proposed by the Ministry of Finance, is expected to take effect before the year ends.

For further information, please contact:

Sathaporn Jumsuk (
Sirirasi Gobpradit (

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