What are other noteworthy developments in the financial sector?
Deposit Insurance System moving from the present “blanket guarantee” to “limited coverage” guarantee The Deposit Protection Institution Act was published on February 13, 2008 and came into force in August 2008 (180 days from the date of its publication). The new regulation moved the previous blanket guarantee system toward a limited coverage system. Pursuant to this new regulation, the Deposit Protection Agency will be established with the responsibility of making compensation to depositors and managing a failed financial institution by acting as its liquidator, reimbursing for the compensation made, and also making payment to other creditors according to their shares. It will be a juristic person separate from the Bank of Thailand and managed by the Deposit Protection Board. Membership in the Deposit Protection Agency is compulsory for commercial banks, foreign bank branches, finance companies and credit foncier companies. The members will pay a premium to the Agency at a rate not exc
