On March 26, 2025, Mr. Matta Amornphisit, the Director of the Deposit Protection Agency (DPA), unveiled the latest statistics on deposit protection in Thailand, revealing that the total amount of deposits in the country reached a staggering 16.32 trillion baht at the end of 2024 (2567 BE). This figure represents a growth of 1.40% or 0.22 trillion baht compared to the previous year. Notably, the most significant increase was observed among depositors with less than 50,000 baht, whose numbers surged by 4.84%. This growth can largely be attributed to government financial assistance programs aimed at vulnerable groups, including a monetary transfer initiative of 10,000 baht to welfare cardholders.
In contrast, depositors with amounts exceeding 1 million baht accounted for approximately 0.5% of the total depositors, while those with deposits over 100 million baht saw an increase of 2.70%. Mr. Matta noted that these trends indicate a shift towards more secure savings as depositors prefer to park their funds in fixed deposit accounts, especially in light of the uncertain economic climate.
As the DPA looks ahead, it anticipates that the growth of deposits in 2025 (2568 BE) will range between 1-3%, suggesting a potential total of around 16.5 trillion baht. This projection aligns with the gradual recovery of the Thai economy, which, despite positive indicators, continues to face various internal and external uncertainties. Mr. Matta emphasized that this forecast is based on existing data and that actual savings behavior may vary as individuals could choose to invest in alternative assets beyond traditional savings accounts.
The DPA's recent report highlighted that there were 99.25 million deposit accounts under protection, marking a growth of 4.75% or 4.50 million accounts from the previous year. Currently, 97.46 million depositors are fully protected under the coverage limit of 1 million baht per depositor per financial institution, which represents 98.20% of all depositors. This level of deposit protection places Thailand second in Asia and 31st globally, reflecting a robust safety net for depositors.
Mr. Matta pointed out that these developments necessitate an elevation in the DPA's operational readiness for 2025. The agency aims to enhance its credibility and efficiency as a deposit protection organization, ensuring that depositors feel secure and confident in their financial institutions. As part of its strategic plan, the DPA has introduced the "Ready & Prompt" initiative, which focuses on improving operational capabilities in areas such as claim payments and asset management. The goal is to ensure that the majority of deposit protection payments are processed within seven working days for those who have linked their accounts to their national identification numbers.
Furthermore, the DPA is committed to strengthening its deposit protection fund, which currently stands at 146.47 billion baht. The agency has set a target return of 2.20% for the fund in 2025, prioritizing investments in secure financial instruments such as government bonds and treasury bills to ensure the fund's stability and growth.
In light of the Bank of Thailand's (BOT) plans to establish virtual banks, Mr. Matta acknowledged that the DPA would need to enhance its operational measures to accommodate these new entities, which inherently carry higher risks compared to traditional banks. He underscored the importance of adapting to the evolving financial landscape to maintain effective deposit protection.
Regarding the government's potential initiative to purchase debts from the public, Mr. Matta stated that the specifics of such measures are yet to be clarified. He expressed hope that if implemented, this program would positively impact the savings of vulnerable groups, particularly those with deposits below 50,000 baht. He noted that the government’s efforts could result in increased savings among these individuals, thereby enhancing their financial stability.
In summary, the DPA's latest report showcases a cautious yet optimistic outlook for Thailand's deposit landscape. With ongoing government support and strategic enhancements within the DPA, the agency aims to foster a secure environment for depositors, enabling them to navigate the economic uncertainties of the coming years.
