Transferable deposits drive South Korean banks’ deposit growth in March

Banks hold an outstanding KRW2.36t in deposits as of end-March.

South Korean banks’ deposits rose by $26.26b (KRW36t) in March, led by a significant expansion of transferable deposits, according to data released by the Bank of Korea (BOK).

Banks now hold an outstanding $1.72t (KRW2,362t) in deposits as of end-March.

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Transferable deposits expanded by $35.36b (KRW48.5t) to $675.8b (KRW926.8t), boosted by quarter-end financial ratio management and corporate deposits for April dividend payments, the central bank said.

In contrast, time deposits declined by $9.7b (KRW13.3t), which BOK said was due to the weakening of banks’ funding incentives and large-scale time-deposit asset-backed commercial paper (ABCP) reaching maturity.

(US$1 = KRW1,370.99)