Chart, banks : deposits of individuals fall in june

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

Total deposits of individuals (commercial banks) fell by 2,8 % in june, compare to may (4165 billions against 4286).

It’s the biggest monthly drop since january 2005 (I don’t have the datas prior to this date).

Year on year (= compare to june 2007), it’s a decrease of 0,7 %.

Now if we look at the types of deposits, we can see that the time deposits are responsible for the drop (savings and demand deposits stay stable).

What can we learn from these datas ? Thai individuals feel confident and therefore consume more and save less ? Or high inflation bite them and force them to digg into their savings ? It’s too early to say.

Stay tuned, in coming charts we will look at the geographical evolution of bank deposits (Bangkok versus up country).

4 Responses to “Chart, banks : deposits of individuals fall in june”

  1. 1 MSB 18 August 2008 at 8:17 am

    Or maybe is because every June and December bank will switch from deposit to debentures to save FIDF cost…

  2. 2 ThaiCrisis 18 August 2008 at 9:26 am

    ->MSB ????

    Explain your comment please.

    These are not the deposits from the banks and/or other financials institutions.

    There are the deposits held, owned by individuals, in commercial banks.

    I’m not aware than Bangkok Bank can move around, at will, my savings and my time deposits… 😉

  3. 3 MSB 19 August 2008 at 3:28 am

    FIDF will charge banks the FIDF cost as percentage of deposit base as of the outstanding balance as of end June and end Dec. So banks will encourage high deposit customers to switch from deposit into B/E form. Customers are willing to buy short-term B/E from banks as it will get higher rate than deposit. For banks, although B/E charge higher rate than deposit, the overall cost for that month end will be cheaper compared to interest on deposit plus FIDF cost.

    I dunno how much you have in BBL but high net worth customers will use this service 2x a year to get higher annual returns. Part of the banks wealth managemnet service.

  4. 4 ThaiCrisis 19 August 2008 at 11:14 am

    Okay I understand now.

    You might be right :

    Even though, due to the amounts, switch to B/E can’t explain alone the decline of total deposits.

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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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