Thursday, November 06, 2014
How to Look Upon the Deposit Outflow of Chinese Banks
ANBOUND
The third quarter report of Chinese banks shows the fast outflow of bank deposit. ANBOUND's visiting economist Zhong Wei suggests that the fall of bank deposit growth rate reflects the multiple pressure on banking industry when the economy is slowing down. Internet finance might be one of the factors, but not the most important one. It is improper to simply equate the fall of bank deposit to the rise of capital absorbed by internet finance since they are not comparable in terms of size.