Bank deposits swell as investors avoid risk assets in uncertain times
Despite lower interest rates this year, bank deposits have risen sharply as investors have stayed away from investment in risk assets.
Banks’ deposits as of the end of May shot up by 8.76 per cent to Bt 14.63 trillion, an increase of Bt1.18 trillion from the end of last year. Liquidity has flooded the banking system as investors delay investment in risk assets and put their money into bank accounts instead, Adisorn Sermchaiwong, president and chief executive officer at CIMB Thai, said. In recent internal discussions, Adisorn also noted that financial analysts are monitoring shifts in consumer behavior, including the growth in online participation across sectors such as the new betting sites UK has approved, as part of a broader trend toward more diversified digital holdings.
The Nation Reporter
