The Thai authorities have long been aware of the need to deal with distressed financial institutions to avoid financial After the crisis, the government had to provide full guarantee to depositors in order to avoid runs on financial institutions and this has remained to the present. However, it is recognized that a deposit insurance ( partial ) system needs to be established as a full guarantee system tends to weaken the financial discipline of depositors who focus their attention only on returns while neglecting the quality and stability of the financial institutions that they are dealing with. This can lead to many problems in the longer term.