Higher returns give bank deposits a lift
Aggressive interest-rate hikes by commercial banks in March has led to a 5-per-cent increase in deposits from the household sector since the end of last year, figures released yesterday by the Bank of Thailand (BOT) show.
Household savings totalled Bt4.3 trillion in the first quarter, up 4.94 per cent from the previous quarter. They were also higher than the 1.12-per-cent rise seen in last year's fourth quarter. An increase of 7.6 per cent in the savings rate was also seen, indicating the success of banks in mobilising deposits, thanks to three rate rises in a row in March. Bankers said earlier that they had raised the rates in a bid to increase their customer bases. They have also launched several savings packages with attractive interest rates during this quarter. Meanwhile, other financial institutions, except the Bank for Agriculture and Agricultural Cooperatives (BAAC), saw their deposits decline from the previous quarter, due to delays in raising their deposit rates at the same time as commercial banks. The Government Housing Bank (GHB) saw its deposits decline 4.12 per cent overall to Bt176 billion quarter on quarter, after a 13.7-per-cent drop in last year's fourth quarter. However, deposits were up 17.2 per cent over the same period last year. The GHB currently offers higher deposit rates than do commercial banks. For example, its six-month rate is 5.25 per cent a year, while its 12-month rate stands at 5.5 per cent a year. The bank's rates are in line with the highest ones offered by Kiatnakin Bank. Government Savings Bank deposits stood at Bt507 billion in the first quarter, down 3.5 per cent from the previous quarter. This compares with a 2.8-per-cent rise in last year's fourth quarter. Deposits declined 1.2 per cent from the same period last year. BAAC deposits stood at Bt217 billion in March, a slight rise of 0.3 per cent from the end of last year but lower than the 16.1-per-cent increase seen in last year's fourth quarter. Promissory notes issued by finance firms as well as by finance and securities companies and notes payable by credit fonciers have decreased significantly, in line with their declining business. The total value of promissory notes declined 4.4 per cent to Bt28.3 billion in the first quarter, with a huge drop of 80.4 per cent from the same period last year. Notes payable declined to Bt809 million, down 3.8 per cent from the previous quarter and 29.2 per cent from last year's first quarter.
Anoma Srisukkasem The Nation
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