Cash flowing from ATMs during crisis

At Kasikornbank, the frequency of withdrawals from automated teller machines was up by 40 per cent and some customers are taking out the maximum of Bt20,000 per time.
Thawee Teerasoontornwong, first senior vice president of KBank, said yesterday that people are panicking about the availability of ATMs.
Most ATM withdrawals are made by employees of payroll customers and holders of savings accounts because they are retail customers and they want to play it safe by building up cash reserves during the flooding.
To serve the high demand, KBank has increased cash supplies in some ATMs to Bt10 million from the usual amount of between Bt3 million and Bt5 million.
When people stop worrying about the flooding, the frequency and amount of cash withdrawals will return to normal, Thawee said.
Smith Banomyong, executive vice president of Siam Commercial Bank, said ATM users were customers with savings of less than Bt1 million who find it essential to keep cash on hand during the flood.
Withdrawals from the bank’s ATMs in Greater Bangkok last month reached Bt5 billion.
However, affluent customers and business operators have deposited money during the flood because some businesses had to close temporarily. They might withdraw their cash after the flooding declines.
The bank is also preparing cash reserves for after the flood because customers are expected to use a lot of money to repair their residences, Smith said.
Weidt Nuchjalearn, senior executive vice president of Krungthai Bank, said ATM transactions were up by 50-60 per cent and most of them were withdrawals.
Low- and medium-income customers have withdrawn cash to ensure they have enough during the flood crisis. Some are also afraid that ATM services might collapse if the machines are flooded.
The panic is short-term and is expected to die down after flood victims evacuate to safe areas.
Savings deposits might not grow because those depositors are the same customers who are withdrawing cash from ATMs.