Related News
Deposits at major banks drop sharply
By Feng Jianmin |
September 23, 2011, Friday
|
Print Edition
Print Edition
DEPOSITS in China's four major banks shrank by a significant amount in the first half of September, indicating tight liquidity, a Chinese newspaper reported yesterday.
The four major state-owned banks have seen the amount of deposits contract by a "rare" 420 billion yuan (US$65.8 billion) by September 15 from the end of August, China Securities Journal reported yesterday, citing unidentified banking sources.
Deposits also shrank in April and July when the banks finished their quarterly and semi-annual performance assessments. It's rare to see deposits drop in September, the report said.
Investors prefer to invest their funds in wealth management products and art collections as they seek returns higher than deposit interest rates, analysts said.
The benchmark one-year deposit rate of 3.5 percent has been lagging the inflation rate for 19 months. Inflation hit 6.2 percent in August from last year, official data showed.
Concerns have arisen that banks, facing a lack of funds, will reduce lending to curb the loan-to-deposit rate below the regulatory 75 percent. New yuan loans by the big-four banks totaled 87 billion yuan in the first half of September, compared with 186.7 billion yuan in the whole of August.
Ye Tan, an independent economics commentator, told China National Radio yesterday that rules on interest rates are losing their efficiency as people seek higher returns.
The four major state-owned banks have seen the amount of deposits contract by a "rare" 420 billion yuan (US$65.8 billion) by September 15 from the end of August, China Securities Journal reported yesterday, citing unidentified banking sources.
Deposits also shrank in April and July when the banks finished their quarterly and semi-annual performance assessments. It's rare to see deposits drop in September, the report said.
Investors prefer to invest their funds in wealth management products and art collections as they seek returns higher than deposit interest rates, analysts said.
The benchmark one-year deposit rate of 3.5 percent has been lagging the inflation rate for 19 months. Inflation hit 6.2 percent in August from last year, official data showed.
Concerns have arisen that banks, facing a lack of funds, will reduce lending to curb the loan-to-deposit rate below the regulatory 75 percent. New yuan loans by the big-four banks totaled 87 billion yuan in the first half of September, compared with 186.7 billion yuan in the whole of August.
Ye Tan, an independent economics commentator, told China National Radio yesterday that rules on interest rates are losing their efficiency as people seek higher returns.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
