Chart, banks : types of deposits and depositors (and final word)

This this the fifth -and last- part of my Commercial Banks Credits/Deposits Charts serie :
1-Credits : amounts and % of growth
2-Credits : explanation of the surge of credit since february
3-Deposits : split between Bangkok and other provinces
4-Deposits : amounts and type of deposits

Today, let’s have a look on the deposits by types of depositors. Who have the money in Thailand ? Individuals ? Businesses ? Government ?

(Source BOT, table FI_CB_012_S3 : All Commercial Banks’ Deposits Classified by Types of Depositors and Accounts)

First, a snapshot of april 2008.

As you can see, Individuals count for 60 % of the total deposits (outstanding, 6 651 billions THB) in april. Businesses count for 21 %.

Now, here is a chart with the evolution of the different types of deposits (demand, savings, time), amounts in billions THB, on 3 years.

Shorter timeline, with the total of deposits (billions THB) plus the % of change year on year to see the trend.

How to read ? In april, total deposits of Individuals reached 4 287 billions, that’s a 1,36 % increase compare to april 2007. Poor performances… Even negative if you count inflation…

We can clearly see the “boost” effect since february (with the government spreading money like Santa Claus).

Why those datas can be important (and difficult to read) ?

The way people manage their money (which kind of deposit and amounts) is a good indicator of their mood and personal situation.

But only the BOT has the whole picture. For instance, time deposits are for the rich individuals, a tiny minority in Thailand. And because time deposits are part of the total deposits, the total amount can be deceiving. The BOT knows of course how many individuals use time deposits…

Therefore, from my point of view, the savings are a much better indicator of the financial situation of the majority of the thai population.

But here, watch out. I said it before : we just have too many different ways to interpret the datas.

For instance : savings are going down. It can be because people struggle with higher prices, low incomes, therefore they use their savings. But it could mean the contrary : people feel confident, therefore they’re not afraid to consume (it’s the american way).

Or it can be a very bad sign of “inflation expectations” (the current big fear of the BOT ) : since you know that inflation is high, that prices are going up relentlessly, it makes no sense to save… You’re going to spend, on anything, because your money will worth less tomorrow…

On the other way : savings increase. Incomes are higher, everything is fine. Or, people are afraid of the future so they feel compelled to save more.

Voila. You see, it’s not easy. 😉

Anyway, I will follow this Credits/Deposits serie every month, to look for trends. Particularily, the famous “inflation expectations”…

2 Responses to “Chart, banks : types of deposits and depositors (and final word)”

  1. 1 chinesethai 27 June 2008 at 5:52 am

    You should dig deeper to find out the number of accounts with 10 million baht and above. Then divided by 2 or 3. You’ll be amazed with Thailand’s vast income gap.

  2. 2 thaicrisis 27 June 2008 at 4:47 pm

    I would love to… ! But unfortunatly, Tarisa and I are not close friends.

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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