According to China’s central bank statistics, in the first half of 2022, deposits increased by $2.7 trillion (18.82 trillion yuan). Household deposits increased by $1.48 trillion (10.33 trillion yuan). Banks completed their annual deposit tasks ahead of schedule, but the bank can’t be happy with that.

Wang Liang , president of China Merchants Bank, analyzed a sharp decrease in consumption, investment, wealth management, and house purchases. Everyone keeps their money in the bank.

According to a reporter’s statistics, as of the end of June, the new deposits of 16 listed banks exceeded $1.8 trillion (12.75 trillion yuan). The average deposit growth rate reached 8.46%.

The central bank’s survey of savers in the second quarter also pointed out that residents are more willing to save than to invest. For example, 58.3% of the residents are inclined to save more, a 3.6% increase compared to the previous quarter. On the other hand, 17.9% of residents favor more investment, a 3.7% decrease compared to the last quarter.

The banks can’t laugh despite reaching the deposit target ahead of schedule.

More and more residents are considering reducing debt and no longer rushing to take out loans to buy houses. Under the situation of easy deposits and difficult loans, lending rates fell sharply compared to the decrease in deposit rates. Bank profits wobble.

According to Wang Liang, retail loans only achieved a little more than 30% of the plan.

The account manager of a city commercial bank in Shenzhen said that the number of early repayment customers significantly increased. Many requests have to wait two months to be processed.

Xiao Qi , an office worker in Beijing, said that in the first quarter, she went to the bank to do procedures to pay off her home loan before the due date. The bank told her to come back in the second quarter. When she returns, she must wait one more month to be processed.

Loan decline, lending interest rate decrease, and deposit interest rate must be competitive. All this has made it increasingly difficult for banks.

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