BANGKOK: -- Unusual withdrawals of cash from the Government Savings Bank in Bangkok and the provinces were reported yesterday and today after the bank president said it has provided interbank loans to the Ban for Agriculture and Agricultural Cooperatives to shore up its liquidity.
In Trang province today, customers of the Government Savings Bank rushed to the bank branch to pull their money out of the bank after learning that the bank has extended loans to the Bank for Agriculture and Agricultural Cooperatives to support the rice-pledging scheme of the government.
Thai News Agency in Trang reported that within one hour after the opening of the bank, more than 10 million baht in cash were drawn out by customers.
Elsewhere in Bangkok’s GSB bank Paradise Park branch, there was also unusual withdrawals by bank customers yesterday with a total of 58 million baht in cash was withdrawn unusually from 80 accounts.
Bank staff said customers cited two reasons in the withdrawals. First is the extension of loans to support the rice-pledging scheme, and second is lower rate than other commercial banks.
There were altogether 279 withdrawals, but 80 were described as unusual withdrawals, the bank staff said.
But at the same day there were 171 deposits, with a total amount of 51.6 million baht.
GSB union yesterday called on all employees to wear black today to protest the interbank loan extension by the bank president.
In a statement issued yesterday, it tells the bank executive to halt the loan extension immediately reasoning the BAAC has sufficient liquidity, and also to recall all the loans it has extended back from the BAAC.
It added that any loan extension to support the rice scheme could wreck customers’ confidence and could inflict damage to the bank.