Individual depositors are rallying to support Government Savings Bank (GSB) after customers withdrew more than 30 billion baht over fears that its loan to the Bank for Agriculture and Agricultural Cooperatives (BAAC) will finance the cash-strapped rice-peldging scheme.
GSB experienced mass withdrawals on Monday amid concern that lending to the BAAC could indirectly indirectly damage the banks liquidity.
Core members of the Pheu Thai Party visited GSB to deposit their money on Tuesday.
According to reports, a group of around 30 businessmen also deposited a total of one billion baht in the GSB, in a bid to counter the mass withdrawals.
Wiwat Theekhakhirikul, 66, chairman of Car Mart Plc, said between 70 million and 100 million baht was deposited by each businessman in the group.
The move was intended to show the group's belief that a financial institution and farmers should not be exploited for political gain regarding the sensitive matter of overdue rice-pledging payments, he said.
Mr Wiwat said the group does not want people to panic or flock to GSB to withdraw their money and sympathises farmers owed money under the rice scheme.
The businessman said he had opened a new account at GSB headquarters with a deposit of 70 million baht. He said he was not rich but wanted to help stabilise the image of the financial institution.
"No matter what your ideology is, it's important to help restore the credibility of the bank because the financial sector is very sensitive. If a normal business transaction such as inter-bank lending cannot be carried out, there could be adverse spiral effects," said Mr Wiwat.
He bemoaned the fact that Thai institutions including the judiciary, the media and political parties have lost their integrity over the past few years, arguing that he would like to see at least one old Thai institute - GSB - remain intact.
GSB is a "family bank" for all Thai people and should not be used as a political tool, he added.
Patchanee Thanapornsin, managing director of the KP Auto Centre, withdrew one million baht from her Kasikornbank account to open a new account at GSB headquarters.
"I grew up seeing my parents go to GSB, having my own GSB piggy bank, and am now doing my own business with GSB as well as other banks," said the Ubon Ratchathani-based businesswoman.
She said she opened her new account at the bank's headquarters shortly before hundreds of GSB staff wearing black stormed into the main building to demand board members take responsibility for the 30 billion baht withdrawn by customers on Monday.
Ms Patchanee, 55, said she and a group of her friends who keep in contact using the Line messaging application felt disheartened when they learned of the panic withdrawals. She said they were moved to show solidarity to the farmers.
"We should not let the state bank and the Thai national bank collapse due to unfounded fears. I hope all sides will find a way to help the farmers," she said.
Patchanee Thanapornsin, left, and Wiwat Theekhakhirikul deposited millions of baht at GSB on Tuesday, Feb 18, 2014. (Photo by Achara Ashayagachat)
A dozen of Ms Patchanee's Line messaging group deposited roughly 115 million baht on Tuesday at GSB headquarters.
As cashiers at GSB headquarters busily processed withdrawals and deposits, senior staff at the branch consoled an elderly Chinese man from Din Daeng, who had come to the bank to check that his money remained safe.
The man in his seventies said he used GSB to deposit profits from his family's apartment rental business, adding that he had been alarmed by the news of mass withdrawals from the bank on Monday.
“Who wouldn't be worried that the money you had saved up throughout your life could be gone? Of course, we feel sorry for the farmers but the government needs to find ways to help them and protesters should not block their efforts," said the Bangkokian.
Nisakorn, 67, who asked that her last name be withheld, said she had never held an account at GSB before but decided to open a new account with a one million baht deposit to show solidarity with the poor.
"I was poor before so I understand what it is like. It is ridiculous for protest leaders to insult farmers and the rural poor by blocking the banks from lending money to pay farmers, at the same time as boasting about helping them," said the trader from Bangkok's Pomprabsatruphai district.
Meanwhile at GSB's Supreme Complex branch in Bang Krabue, two retired civil servants opened new accounts with five million baht each, while several small business owners opened accounts with deposits ranging from 500 to 1,000 baht.
At GSB's Phrom Phong branch, Sumalee, a pro-election campaigner and member of the candle-lit pro-democracy group, purchased a three-year bond worth five million baht and opened a new savings account.
"It’s time for solidarity," said the housewife, who is married to a doctor at a private hospital on Sukhumvit Road.
Veteran social activist and former senator Jon Ungphakorn also said he had opened a new GSB account with one thousand baht.
Salinee Wangtal, assistant governor of the Bank of Thailand, said on Tuesday that she had invested additional money in the GSB lottery scheme to show she has confidence in the bank.
Recent monitoring shows that the financial status of GSB is strong and the bank has no problems with liquidity shortages, she said.
The GSB on Sunday confirmed a five billion baht loan to Bank for Agriculture and Agricultural Cooperatives (BAAC). It promised to reconsider the deal if it caused public uproar.
On Monday, the GSB confirmed that it would suspend further lending to BAAC after 30-billion-baht was withdrawn by customers amid concerns the loan is being used to pay for the loss-ridden rice-pledging scheme. Both banks are state-owned.
Employees of GSB gathered on Tuesday morning at the bank's headquarters to demand the resignation of its president Worawit Chailimpamontri in protest at the BAAC loan and its alleged use to fund the government's rice subsidy project.
Core members of the Pheu Thai Party visited the Government Savings Bank to deposit their money on Tuesday, Feb 18, 2014. During their visit, they were greeted by a group of anti-government protesters. (YouTube video uploaded by EndZone02)