EXCESS liquidity is ebbing away

is this a sign of bubble?

CIMB Research, Sept 24

EXCESS liquidity is ebbing away. Domestic banking unit loan-to-deposit ratio has crept up to 92 per cent. S$-deposit growth year to date is a sluggish 3.2 per cent versus loan growth of 9 per cent. UOB has been bleeding deposits for over three quarters now and DBS lost 9.5 per cent of its S$-fixed deposits in Q2 2012. Previously unfazed by deposit competition, DBS recently raised time deposit rates to match peers.

No doubt, the local banks still hold the lion's share of S$-deposits but competition from large foreign banks is chipping away the deposit franchises.

An extensive branch and ATM network used to be the key to attracting deposits. In a world of increasing digital banking transactions and sustained low interest rates, branches have lost their value. Instead, attractive rates and customised lifestyle benefits are the new battleground for deposits.

(25-09-2012, 11:25 PM)pianist Wrote: is this a sign of bubble?

CIMB Research, Sept 24

EXCESS liquidity is ebbing away. Domestic banking unit loan-to-deposit ratio has crept up to 92 per cent. S$-deposit growth year to date is a sluggish 3.2 per cent versus loan growth of 9 per cent. UOB has been bleeding deposits for over three quarters now and DBS lost 9.5 per cent of its S$-fixed deposits in Q2 2012. Previously unfazed by deposit competition, DBS recently raised time deposit rates to match peers.

No doubt, the local banks still hold the lion's share of S$-deposits but competition from large foreign banks is chipping away the deposit franchises.

An extensive branch and ATM network used to be the key to attracting deposits. In a world of increasing digital banking transactions and sustained low interest rates, branches have lost their value. Instead, attractive rates and customised lifestyle benefits are the new battleground for deposits.

Bleeding deposits i thought this is what the banks wanted? Purposely give low interest rates and when u have tons of money in deposits, their bankers will call u to invest in this and that.
My dad complain to me about the low rates but didnt do anything. My mama friend decided to put most of his deposits into StarHub.

> My dad complain to me about the low rates but didnt do anything. My mama friend decided to put
> most of his deposits into StarHub.

Depending on the time of entry, your mama friend is a genius. I made my wife open the CPF investment account. She reluctantly did it. In 1 year, she was shocked with returns of 30% for the few STI stocks. These are not small caps.

I told my mum to call her broker. She insist on me doing it, and monitoring for her... lots of excuses. I said u do it yourself, you got to be responsible for your own cash. She did not.

1 year later, she complained that interests so low... So similar

Investing is a personal responsibility. Of course, there are some who delegate it to loved ones to do it on their behalf.

> there are some who delegate it to loved ones to do it on their behalf

They also delegate their accountability to you... Win they laugh, lose they blame u

(26-09-2012, 03:29 PM)Contrarian Wrote: > there are some who delegate it to loved ones to do it on their behalf

They also delegate their accountability to you... Win they laugh, lose they blame u

those who matter will not blame you, those who blame you don't matter...

(26-09-2012, 03:39 PM)freedom Wrote:

(26-09-2012, 03:29 PM)Contrarian Wrote: > there are some who delegate it to loved ones to do it on their behalf

They also delegate their accountability to you... Win they laugh, lose they blame u

those who matter will not blame you, those who blame you don't matter...

The first will make you feel sad, the later will make you angry.

http://www3.uobgroup.com/assets/pdfs/res...131121.pdf