Financial Institutions Development Fund
The Financial Institutions Development Fund (FIDF), part of the Bank of Thailand (BOT) with a separate legal entity, was established in 1985 as a channel to provide financial assistance to troubled financial institutions, containing financial damages and mitigating the threat to stability of the financial institution system. The FIDF played vital roles in bailing out cash-strapped financial institutions during the 1997 financial crisis in addition to its usual responsibilities in guaranteeing full repayment to depositors and creditors of financial institutions to maintain public confidence and financial institution system stability.
As numerous financial institutions were forced to close in the wake of severe financial crisis in 1997, the FIDF pumped in massive funds to fix financial statuses of financial institutions in difficulties and guaranteed full repayment to depositors and creditors off all financial institutions. This mission costs overall damage of over 1.4 trillion baht to the FIDF.
After the 1997 crisis, the FIDF has continuously wound down its roles. It had in 2003 trimmed its guaranteeing responsibilities to only depositors and eventually ceased to provide such guarantee after the enactment of the Deposit Protection Agency Act on August 11, 2008. The FIDF’s current role is limited only to managing its own assets.