Savings Bank Deposits Decline for 5th Straight Month

Savings banks' deposit balances have continued their downward trend for five consecutive months. As of the end of February, savings bank deposit balances stood at 97.9365 trillion won, a decrease of 238.4 billion won compared to the previous year.

Deposit balances, which had peaked at 105.0165 trillion won at the end of September last year, began to decline thereafter. Despite savings banks introducing deposit products with interest rates in the 3% range since early this year to attract funds, their effectiveness in retaining deposits was limited as money flowed more significantly into the stock market.

In contrast, savings banks' loan balances have begun to rise again. After standing at 93.9212 trillion won at the end of November last year, loan balances reached 94.6541 trillion won by the end of February, increasing for two consecutive months. As their deposit base weakens while loans grow, the pressure on liquidity management has intensified.