of the blanket guarantee. In place of the blanket guarantee will be the Deposit
Insurance Agency (DIA) Act that will cap the level of government guarantee to no
greater than 1 million baht per individual depositor account per bank. Although the
level of protection has decreased, the scheme still covers around 98.6 percent of the
total number of retail deposit accounts in Thailand, but with the added benefit of
curtailing moral hazard and strengthening market discipline.
Currently, the draft DPA is under final consideration by the Office of the
Council of State. Upon completion, the Office of the Council of State will forward the
draft DPA to the Ministry of Finance who will submit it for approval by the Council
of Ministers. Once endorsed by the Council of Ministers, the draft DPA will be tabled
to Parliament in accordance with legal procedures