"Stocks and Coins Both Unstable"... Demand Deposits Surge by 30 Trillion Won in Two Weeks
Increase in Funds Holding Back on Investment Destinations
[Asia Economy Reporter Kiho Sung] Nearly 30 trillion won of "money with nowhere to go" has flowed into the five major banks this month. It is analyzed that funds waiting for investment destinations have been placed in demand deposits, which can be withdrawn at any time, as the stock market remains in a box range and the volatility of virtual currency markets such as Bitcoin has surged.
According to the banking sector on the 20th, as of the 14th, the balance of demand deposits (excluding Money Market Deposit Accounts (MMDA)) at the five major banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?was recorded at 654.8458 trillion won. This is an increase of 28.3669 trillion won from 626.479 trillion won at the end of the previous month. This amount is close to the record high of 29.0277 trillion won in February, reached within two weeks. Demand deposits are ultra-short-term deposits that depositors can easily withdraw from banks whenever they want.
Demand deposits decreased from 582.168 trillion won at the end of December last year to 576.0551 trillion won at the end of January this year. After that, they surged from 605.0828 trillion won at the end of February to 617.4389 trillion won at the end of March, and have shown a sharp increase since the end of April.
The rapid increase in demand deposits indicates that the amount of idle funds unable to find investment destinations has grown accordingly. In fact, until the beginning of this year, demand deposits sharply decreased as the stock market was booming and the virtual currency frenzy was underway. The market sees that as the stock market continues to move sideways and the volatility of virtual currencies increases sharply, more investors are placing standby funds into demand deposits.
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A banking official said, "Since the beginning of this year, the stock market and virtual currency market, which have been in the spotlight, are recently undergoing adjustments, leading to an increase in demand deposits," adding, "Especially as the virtual currency market experiences repeated ups and downs, funds searching for other promising investment destinations may flock even more."
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