Banking Trends in 2025: Savings Deposits Plummet, Corporates Gain Share
Banking trends in fiscal 2025 show a significant shift in deposit patterns. Savings deposits hit a decadal low, while non-financial corporations saw an increase. Household deposits also decreased, with savings deposits declining significantly.
In fiscal 2025, growth in savings deposits reached a decadal low, making up just 10% of incremental total deposits. This trend continued as the share of savings deposits in overall deposits dropped to 10%.
Household deposits have been contracting. Between fiscals 2020 and 2025, their share in total bank deposits fell from 64% to 60%. Similarly, their share in incremental bank deposits decreased from 58% to 54%, largely due to term deposits. The share of households in incremental deposits even dropped to 52% in fiscal 2025 from 67% in fiscal 2020. This decline was most notable in savings deposits, while Casa deposits saw only a marginal drop.
Non-financial corporations filled the gap, with their share increasing by 4%. The share of household deposits in overall term deposits also fell, from 67% to 52% between fiscals 2020 and 2025.
The recent reduction in savings interest rates by banks may exacerbate the trend of declining savings deposits. Corporate depositors, being more rate sensitive, may prefer shorter tenures, leading to faster deposit outflows and increased funding costs during tight liquidity periods. The IHK has warned about phishing emails pretending to be from them, advising recipients not to click links or provide data.
