Under the time frame of the
Total deposits in the commercial banking sector amount to
Some of the unprotected deposits could likely flee to state-owned banks, whose majority shareholder, the
Property funds and real estate investment trusts (REITs) are expected to benefit from deposit outflows, given their claims of a steady revenue stream.
Property funds have gained in popularity among investors, with their IPOs comprising a large chunk of the primary market in recent years. Fund-raising through IPOs grew by 15% a year from 2008-13 compared with 6% for other types of funds.
REITs, which will legally replace property funds soon, are expected to receive a good response from investors.
Once the deposit protection is lowered to
"Next year privately owned banks will face stronger deposit competition from both state-owned banks and other savings instruments, tighening the industry's liquidity as a result," said Mr Benjarong.
A higher interest rate in both the domestic and global markets is another factor likely to soak up liquidity in the banking system.
The research house forecasts the US Federal Reserve will start normalising its benchmark rate in the second half of next year, with the Thai central bank following suit.
TMB Analytics predicts the Bank of
The research house estimates
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