Time Deposits Continue to Rise... Five Major Banks Increase by 19 Trillion Won in One Month

Internet Banks Also Show Growth in Fixed Deposits

[Asia Economy Reporter Shim Nayoung] During the month of November, the balance of time deposits at the five major banks (KB, Shinhan, Hana, Woori, NH Nonghyup) increased by more than 19 trillion KRW. According to the financial sector on the 4th, due to the rise in the Bank of Korea's base interest rate, deposit interest rates increased, and as of the end of last month, the balance of time deposits at the five major commercial banks was recorded at 827.2986 trillion KRW. This is an increase of 19.071 trillion KRW (2.4%) compared to the end of October (808.2276 trillion KRW).

On the other hand, during the same period, the balance of installment savings at the five major banks decreased by 647.2 billion KRW, from 39.017 trillion KRW to 38.3545 trillion KRW. The balance of demand deposits also decreased by 19.6631 trillion KRW to 606.3528 trillion KRW compared to the end of the previous month (626.0159 trillion KRW). A commercial bank official explained, "As the interest rates on deposit products rose more than those on installment savings, the balance of time deposits mainly increased."

Not only commercial banks but also internet banks continued the trend of increasing deposit balances last month. As of the end of November, KakaoBank's deposit balance increased by 244.3 billion KRW compared to the end of the previous month, reaching 33.2244 trillion KRW. K Bank's deposit balance recorded 14.45 trillion KRW, an increase of 150 billion KRW.

Corporate loan demand increased. This appears to be due to deteriorating conditions for corporate bond issuance. As of the end of November, the loan balance for large corporations at the five major banks was 111.3275 trillion KRW, an increase of 4.2009 trillion KRW compared to the end of October (107.1266 trillion KRW). During the same period, the loan balance for small and medium-sized enterprises was 599.0938 trillion KRW, up 1.5531 trillion KRW from the end of the previous month (597.5407 trillion KRW).