Transcript of the above video:

As the title of this video suggests, we are discussing Corporate Banking and insurance issues associated with banking here in Thailand. I thought of actually making this video after reading a comment on a prior video we did regarding banking which kind of led me down this rabbit hole. So I thought of making this video after reading a, it is actually the website of the DPA, that is the Deposit Protection Agency, website is dpa.or.th. Quoting directly:

"Who is protected?” (And this is regarding insurance of bank accounts)

“Individual depositors are automatically protected upon opening a deposit account with a financial institution as prescribed in the Deposit Protection Agency Act B.E. 2551 (2008). Protection is based on a per depositor per institution basis meaning that all of an individual's deposit accounts across all branches of that financial institution will be aggregated into a single amount. Juristic depositors such as companies, funds, foundations, temples, associations and cooperatives are also protected in the same manner as individual depositors."

Now for foreign corporations this is where it gets interesting, quoting further:

"Foreigners with Thai Baht deposit accounts at member financial institutions in Thailand are also protected under the Deposit Protection Agency Act. However, "Non-resident Baht accounts" as defined in the Exchange Control Act B.E. 2485 (1942) are not protected."

Let's have a look at that:

"A non-resident Baht account is a special type of deposit account denominated in Thai Baht that is used solely for transactions as specified in the Exchange Control Act. A non-resident means: Corporations, Institutions, Funds, Financial Institutions or juristic persons located outside Thailand." Quoting further: "Entities of foreign governments located outside Thailand; Branches and agents of domestic juristic persons located outside Thailand; natural persons not of Thai nationalities and not have any alien Identity or residence permits. However non-residents exclude: Thai Embassies, Thai Consulates or other entities of Thai Government's located outside Thailand; Foreign Embassies, Foreign Consulates; specialized agencies of the United Nations; International organizations or institutions both financial and non-financial located in Thailand; branches and agents of foreign juristic persons located in Thailand."

Notably branch offices I think of foreign companies may not be able to avail themselves of insurance here in Thailand. That is a good data point, not a good data point but that is an important data point for those who are part of a foreign corporation looking to do business here in Thailand. It also may be a good argument in favour of just setting up a local corporation which might be a subsidiary of an offshore entity but it is an incorporated entity here in Thailand as that type of entity may be able to avail themselves of insurance protection associated with banking here in the Kingdom of Thailand.