SCB sees 7.5% growth in bank deposits during virus crisis

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SCB sees 7.5% growth in bank deposits during virus crisis

By THE NATION

 

 

Siam Commercial Bank said that bank deposits in the first quarter of this year enjoyed robust growth of 7.5 percent year-on-year, noting that Covid-19 and online platform awareness has prompted people to boost their savings, while the business sector has opted to deposit cash for enhanced liquidity in the wake of high volatility in the capital and bond markets.

 

SCB president Apiphan Charoenanusorn said that overall deposits in the first quarter stood at Bt2.27 trillion, up 7.5 percent from the same period last year and up 5.4 percent from the end of 2019.

 

"The individual client segment is depositing more money in regular savings deposits, SCB EZ savings deposits, and e-passbooks. Because EZ Savings Accounts and E-Passbooks provide higher interest rates than regular savings deposits, we believe E-Passbook deposits will grow significantly in the same direction with local digital banking expansion in the future," she said.

 

SCB said deposit growth in the first quarter was also caused by individuals and businesses shifting their deposits from small- and medium-size banks to SCB by opening CASA [current accounts and saving accounts] since they have confidence in the bank's stability in terms of financial position, liquidity, capital funds, and corporate image in the face of mounting concerns over the Covid-19 pandemic.

 

In addition, clients have reduced their investments in the capital and bond markets and shifted to deposits, particularly in CASA, due to high market volatility.

 

Simultaneously, business clients have been boosting liquidity through deposits, slowing down investment, and shifting to holding cash or deposits with the bank to maintain liquidity. This resulted in the bank's CASA deposits increasing to 73 percent in the first quarter of 2020 from 67 percent at the end of 2019.

 

SCB forecasts that deposit growth will reach equilibrium when the Covid-19 epidemic eases. However, the bank said it will continue its strategy of enhancing deposit growth in terms of CASA and the number of clients while maintaining its existing client base. To encourage clients to deposit their money through E-Passbooks, the bank will offer more attractive interest rates compared to regular savings accounts.

 

The bank is inviting people to save their money through digital deposit products that offer higher interest rates than regular deposit accounts. It said opening digital deposit accounts was another key channel for boosting social distancing in line with measures to prevent the Covid-19 pandemic.

 

Source: https://www.nationthailand.com/business/30387512

 

-- © Copyright The Nation Thailand 2020-05-08

 

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[worgeordie]

They might be depositing the 5K Bhat they got off the Government,

I thought there were Millions out of work with nothing coming in,

I am sure other countries around the World will be having more

withdrawals (if anyone has money in their account),so who are

those in Thailand that have excess money to deposit?.

 

The economy is on its knees but SCB has a 7.5 % increase

in deposits,Thailand always goes against the norm.

regards worgeordie

[bkk6060]

Yes, it does not make a lot of sense the banks seem to have more lines then usual I guess all are making deposits?

Personally, I repatriated most of my account here about a month ago when the baht was around 33. 

[natway09]

Scared to leave it under the bed in these troubled times