Executive vice-president Smith Banomyong said that over the past few years the deposit market has seen fierce competition offering high rates to draw deposit accounts.
But competition appears to have come to an end and SCB has not provided interest rates for deposits between 500 million and
SCB, the country's third-largest bank in terms of assets, is the first bank to adjust the board rate for deposits improving both liquidity and financial cost management. The interest rate for such deposit tiers is higher than small deposits by 0.1 to 0.3 percentage points.
SCB's targeted 2014 deposit growth of
There is no rate offering for large amount deposits by wealthy customers. This client segment, as a result, has moved to other investment instruments with higher returns. Mutual funds and the equity market are alternatives. In addition, a number of large depositors have moved their deposits from SCB to other banks.
"Some customers still have confidence in state-owned banks despite concerns about lending to the government for the rice-pledging scheme.
"Some state-owned banks offer higher interest rates in the same tiers as private banks,"
For special deposits, it will focus on the short-term after running a fixed-deposit campaign for four months with interest rates of 2.35% to 2.55% per year, depending on the deposit amount from last month.
Kris Chantanotoke, an executive vice-president of BAY, said banks will slow down deposit mobilisation this year in line with less-than-10% loan growth at each bank.
If the Bank of
But if the central bank decides to cut its rate amid the slowing economic momentum, it would reduce the rival trend.
BAY, the country's fifth-largest bank, set growth rates for both loans and deposits at 9% this year.
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