According to the financial industry, the deposit balance of the top five banks last month was 592.6669 trillion won (about 63 trillion yen), down from 61.3 trillion won the previous month.
This is a decrease of more than 20 trillion won compared to the previous year (approximately 65.2 trillion yen, or 393.7 trillion won). Deposits considered as investment standby funds usually have an interest rate of less than 1% per year and can be withdrawn at any time, unlike ordinary savings accounts.
This is a decrease of nearly 30 trillion won (US$30 billion) from 623.3173 trillion won (US$640 billion) in September, two months ago, and the largest decrease since January of this year.
The balance of fixed deposits fell below 600 trillion won (US$63.8 trillion) for the first time. The balance of fixed deposits fell from 942.133 trillion won (US$99.2 trillion) at the end of October to 948.2201 trillion won (US$1.2 trillion) at the end of November.
Although the balance increased, the increase was 46% lower than the previous month. Fixed deposits increased by more than 10 trillion won (about 1.6 trillion yen) each month from May to August.
The increase in fixed-term savings was also down 32% from the previous month. This is interpreted as a decline in demand to take out savings accounts before interest rates fall further, even as interest rates on deposits have fallen sharply.
It has been some time since interest rates on fixed deposits at banks have fallen below 4% per year. According to the Japan Bankers Association, the top five banks have one-year fixed deposit rates of 3.15% to 3.55% per year.
Of the 35 fixed-term deposit products offered by savings banks, 12 have annual interest rates below the previous benchmark rate of 3.25 percent. Of these, three have fallen to the 2 percent range.
The interest rate was 3.45% as of the 2nd, barely different from that of regular banks. The Bank of Korea recently made the unprecedented decision to cut interest rates twice in a row, so deposit interest rates may fall further.
The financial industry believes that the reason for the outflow of more than 20 trillion won in deposits in one month is due to a shift in investment targets to U.S. stocks and virtual currencies.
Due to the "Trump Trade" of the US Securities and Exchange Commission, Bitcoin is showing an ultra-bullish market heading towards $100,000 (approximately 14.9 million yen). The US stock market is also hitting new record highs every day.
In fact, the balance of "negative bank books," which increases when virtual currency and securities markets are booming, was 39.18 trillion won (about 4.16 trillion won) by the end of October for just the five major banks.
The amount of U.S. stocks held by domestic investors investing in overseas stocks increased by 442.4 billion won (about 47 billion yen) from 39.62 trillion won (about 4.32 trillion yen) at the end of November.
At the beginning of the month, it exceeded 100 billion dollars (about 14.9 trillion yen) for the first time. A bank official said, "With interest rates being lowered, not only are deposits moving to fixed deposits due to demand for transfers, but also transaction
"This appears to be due to the downward trend in household loans, which has led to a shift to investment assets other than deposits and savings," he said. Meanwhile, the five major banks' household loans last month increased by 1.2575 trillion won (about 134 billion yen) from the previous month.
0 billion won, remaining in the 1 trillion won range for the second consecutive month. The increase in home equity loans was 1.325 trillion won (US$1.3 billion), remaining in the 1 trillion won range for the second consecutive month.
However, this is a sharp decrease compared to 8.9115 trillion won (about 948 billion yen) in August and 5.9148 trillion won (about 623 billion yen) in September.
2024/12/03 07:07 KST
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