Cashing out: millions 'disappear from China bank accounts'

[etan]

If bank fails, we are covered by this:
https://www.sdic.org.sg/di_faq.php

But if bank employee runs road with depositors money, are we insured by Deposit Insurance Scheme?



Cashing out: millions 'disappear from China bank accounts'

See more at: http://business.asiaone.com/news/cashing...mu8iN.dpuf

A businesswoman deposited the equivalent of almost US$2 million (S$2.65 million) at a branch of China's largest bank but only US$20 remained after most of it was transferred without her authorisation, state media reported. Wang Li was one of several victims of a scam, involving millions of dollars, at a branch of the state-owned Industrial and Commercial Bank of China (ICBC) in Shijiazhuang, highlighting increasingly sophisticated financial crime. A branch executive persuaded her to put 10.8 million yuan (S$2.25 million) in a one-year deposit programme offering interest rates more than three times the norm, China News Service reported. But when she checked her account earlier this month it held only 124 yuan, the report on Tuesday stated. She had never used the online banking security device she was given when she opened the account, it added - but was later told that the device had a different serial number to the one she had signed for, implying that the genuine one may have been used to access her funds.

[opmi]

the SG bank will made good. If not, the bank will see bank run.
Banking is a confidence game.

Deposit Insurance Scheme is when banks collapse only. Not fraud.
So little coverage if really collapse.

If bank fails, we are covered by this:
https://www.sdic.org.sg/di_faq.php

But if bank employee runs road with depositors money, are we insured by Deposit Insurance Scheme?



Cashing out: millions 'disappear from China bank accounts'

See more at: http://business.asiaone.com/news/cashing...mu8iN.dpuf

A businesswoman deposited the equivalent of almost US$2 million (S$2.65 million) at a branch of China's largest bank but only US$20 remained after most of it was transferred without her authorisation, state media reported. Wang Li was one of several victims of a scam, involving millions of dollars, at a branch of the state-owned Industrial and Commercial Bank of China (ICBC) in Shijiazhuang, highlighting increasingly sophisticated financial crime. A branch executive persuaded her to put 10.8 million yuan (S$2.25 million) in a one-year deposit programme offering interest rates more than three times the norm, China News Service reported. But when she checked her account earlier this month it held only 124 yuan, the report on Tuesday stated. She had never used the online banking security device she was given when she opened the account, it added - but was later told that the device had a different serial number to the one she had signed for, implying that the genuine one may have been used to access her funds.

[specuvestor]

Deposit insurance globally AFAIK are administered by the government cause when banks fail, the government cannot lose people's confidence by not paying up, especially in local currency should not be an issue. The VALUE of the currency is of course another matter

"The Singapore Deposit Insurance Corporation (SDIC) administers the Deposit Insurance Scheme in Singapore. The board of SDIC is accountable to the Minister in charge of MAS"

[soros]

The deposit insurance scheme applied by Hong Kong banks is only good for HK$ 500,000( per savings account.).
For UK Banks the deposit insurance covers up to GBP 80,000. and in EU Banks , the cover is up to 100,000 euros.

[etan]

As per soros post, I did a rough conversion for DIS to SGD:
HK = 86175
GBP =165783
Euros = 148770
SGD = 50000 (remembered it was previously $20000 only)

Wah ours is really pathetic! Wonder how our govt decided on the amount; so far the lowest as per above comparison.

Oh btw, opmi, you are right! SG banks must make good the amount for fraud cases.
Perhaps I should rephrase my Q : if bank employee runs road, will we be compensated in full?

[dtane]

Banks have an insurance in place to cover criminal acts by employee known as Banker's Blanket Bond. So such acts are usually covered in Singapore.