2.7 percent bank deposit growth in the Northeast last year



BANGKOK: -- Cash deposits in commercial banks in the Northeast grew 2.7 percent to 623 billion baht last year compared to 3.1 percent growth to 607 billion baht a year earlier, according to the northeastern office of the Bank of Thailand.

The smaller growth of bank deposits last year was attributable to cutback in current account and fixed deposits.

The fiscal economic report of the central bank’s northeastern office said that most commercial banks managed their financial costs by controlling the growth of their bank deposits at a slower pace than the growth of credits.

Credits for business and households grew at slower pace because most banks were cautious in extending credits for fear of non-performing loans due to declining revenue in the farming sector and increased household debts.

Last year’s credits expanded 7.3 percent to stand at 803 billion baht compared to 7.49 percent growth to 749 billion baht in 2014.

However, the report said that the overall economic situation of the Northeast last year was good the consumption of the private sector, expenditure in essential items, expansion in service sector and increased government investments.

Inflation rate in the Northeast was minus 1.11 percent against 2.2 percent in 2014 in correspondence with substantial cut in oil prices.

Source: http://englishnews.thaipbs.or.th/content/149198


-- Thai PBS 2016-02-03

I have seen the delay first hand with banks reluctant to lend money to locals ,

the process is so drawn out , yet they still make money and return VERY little interest on savings,

All afraid to be a market leader in that regard,

This deposit growth may be misleading if one concludes it indicates an improved economy over last year.

Prayut has been funneling massive amounts of government (aka taxpayer) funds through banks to finance and collateralize high-risk loans to the agricultral sectors as part of Somkid's grand government stimulus scheme. So of course, deposits are up from last year.

Given that household debt continues to rise and banks have been encouraging more credit card debt, it's unlikely that consumers are instead saving more. With the economic downturn and flight of foreign capital out of Thailand, it is also unlikely Thai agricultural businesses are the source for greater deposits - they need capital!

Edited February 3, 201610 yr by Srikcir