A-Share Bull Market Draining Bank Deposits

China's 11 big listed banks saw their deposits fall 2.1%, ¥1.49 trillion, in 2014. The bull market in A-shares and the rise of Internet banking and online money market funds pulled deposits away.

The PBOC reported that in Q1, the entire financial system saw deposits rise by 10% versus 2014, but deposits at banks were down 30% in Q1 and 18% in March versus the year earlier period. Some banks finished Q1 with deposits lower than 1H 2014, others were down from the end of Q3.

Zhejiang Online: 遭遇史上最难拉存款 五大行利率最高上浮到顶

Related from Bloomberg: China Banks’ Worst Year Since 2004 Seen as Bad Loans Climb
ICBC, China Construction Bank Corp., Agricultural Bank of China Ltd, Bank of China Ltd. and Bank of Communications Co. all this week reported profit growth of less than 2 percent, down from an average of about 10 percent for the same period in 2014.

No comments:

Post a Comment