One-third of Thai depositors have a deposit steadiness beneath 500 baht, whereas the mixed deposits of the most important 10% of depositors account for 93% of economic banks’ whole deposits, says the Financial institution of Thailand’s assume tank.
This implies a excessive focus of deposits and low financial savings for a lot of Thais, in line with the Puey Ungphakorn Institute for Financial Analysis (Pier).
Financial savings accounts are ubiquitous within the nation, as half of the Thai inhabitants have deposit accounts at industrial banks, however 50% of them have a steadiness beneath three,124 baht and one-third have a steadiness beneath 500 baht. Some zero.2% have deposits of greater than 10 million, mentioned Atchana Lamsam, head of networking and communications for Pier.
The findings come from a statistical evaluation of knowledge from the Deposit Safety Company (DPA) as of June 2017.
There have been 37.9 million depositors who parked cash in 80.2 million industrial financial institution deposit accounts, totalling 12 trillion baht, or 72% of the nation’s whole deposits.
The highest 10% of depositors had their cash concentrated in huge cities, together with Bangkok and neighborhood, Chon Buri, Chiang Mai, Nakhon Ratchasima and Songkhla, she mentioned.
Based on a breakdown by intercourse, females had extra deposit accounts than males, and their deposit quantities have been double that of the alternative intercourse.
This means that ladies have higher monetary self-discipline or administration abilities, they usually play an essential position in managing family cash, Ms Atchana mentioned.
The research discovered 88% of depositors put cash in financial savings accounts, which yield decrease returns than fastened deposit accounts. Depositors most well-liked depositing cash at giant industrial banks.
Furthermore, half of depositors had just one account.
Financial savings accounts have been the preferred amongst individuals from all walks of life, with 93.three% of depositors’ portfolio being allotted there, whereas 6.three% have been in fastened deposits.
The research additionally discovered that fastened deposit accounts have been in style amongst retirees.
These dwelling in Higher Bangkok had the very best variety of deposit accounts, whereas these within the South had the least, Ms Atchana mentioned.
These residing within the Northeast had the bottom quantity of deposits in accounts.
She mentioned one discovering from the research is Thais’ financial savings behaviour is worrisome, given the excessive focus in deposits among the many rich and low financial savings and deposit quantities in accounts that supply low returns.
A coverage to encourage financial savings ought to concentrate on consciousness and understanding of the significance of financial savings, not simply selling entry to deposit companies, Ms Atchana mentioned.