Major Thai Banks Stockpile Over 100 Billion Baht for Chinese New Year Rush
Financial institutions prepare record cash reserves as spending forecast hits 54 billion baht amid election boost
- Major Thai commercial banks have collectively prepared over 100 billion baht in cash reserves to meet high demand during the Chinese New Year festival.
- The preparation is in response to a forecast that consumer spending will reach a six-year high of 54.2 billion baht, partly driven by an "election dividend" effect.
- Leading contributors to the cash stockpile include Bangkok Bank (40 billion baht), Krung Thai Bank (36 billion baht), and Siam Commercial Bank (28.9 billion baht).
- The cash is being distributed through extensive ATM and branch networks, with banks also supplying new banknotes for traditional "ang pao" (red envelope) gifting.
Financial institutions prepare record cash reserves as spending forecast hits 54 billion baht amid election boost.
Thailand's major commercial banks have collectively allocated more than 100 billion baht in cash reserves to meet surging demand during the Chinese New Year festival, which runs from 15-17 February 2025, as spending is projected to reach a six-year high.
Bangkok Bank leads the cash preparation effort with 40,000 million baht set aside, while Siam Commercial Bank (SCB) has reserved 28,900 million baht, Kasikornbank 23,600 million baht, and Krung Thai Bank 36,000 million baht for the Year of the Golden Horse celebrations.
The substantial cash stockpiling comes as the University of the Thai Chamber of Commerce forecasts total Chinese New Year spending will reach 54,221.53 million baht—the highest level since 2021 and a 5% increase from last year's 51,787.52 million baht.
Dr Thanavath Phonvichai, president and chief adviser of the Centre for Economic and Business Forecasting at the University of the Thai Chamber of Commerce, attributed the spending surge partly to benefits from the recent election, creating what he termed an "election dividend" effect on consumer confidence.
The banks are distributing cash reserves through extensive networks of branches and ATMs across Bangkok and provincial areas. SCB, for instance, has allocated 21,000 million baht for its 9,180 ATMs and 7,900 million baht through its 662 branches. Bangkok Bank will service customers through over 7,600 ATM locations nationwide.
Special services include increased ATM refilling frequency and the provision of new banknotes for traditional red envelope ("ang pao") gifting—a key Chinese New Year custom symbolising good fortune.
Digital alternatives are also gaining traction, with Bangkok Bank promoting cashless "e-ang pao" services through mobile and internet banking platforms, reflecting the country's shift towards a cashless society whilst maintaining traditional cultural practices.
Umakamon Suntornsurat, assistant director of the Centre for Economic and Business Forecasting, revealed that survey findings show 70.3% of respondents noted higher prices for ceremonial goods, leading many to purchase only essential items or reduce quantities. However, this hasn't dampened overall spending enthusiasm.
Tourism patterns during the festival show 55.9% of respondents planning day trips, whilst 93.2% will travel domestically. Some 58.9% will fund their Chinese New Year spending from regular salaries, with 79.8% acknowledging current economic conditions influence their traditional "ang pao" giving.
TTB Bank has reserved 10,000 million baht and Krungsri (Bank of Ayudhya) 9,155 million baht, demonstrating the banking sector's comprehensive preparation for one of Thailand's most significant spending periods, particularly given the country's substantial Thai-Chinese population.
