The heavy deposit run at the Government Savings Bank (GSB) may not be a crisis for this century-old institution regarding its accumulated assets worth 2.17 trillion baht. But it is the first time in its 100-year history that the bank, established by King Vajiravudh and run with the well-known "guaranteed by the government" slogan, has been hit with such a credibility loss.
Customers of the Government Savings Bank rush to withdraw their cash earlier this week following reports that the bank has lent to the Bank for Agriculture and Agricultural Cooperatives to pay for the rice-pledging scheme.
The massive cash pull that began on Monday, totalling 30 billion baht, was stunning, to say the least. The amount was three times higher than normal — the highest amount of cash withdrawn after extended holidays has only reached seven billion baht in the past. The total deposit run in two days amounted to 48 billion baht.