Business deposits still flying to the Big Four but Regionals Catching
The DFDI ratios between the Big 4 and the regionals are becoming more evenly balanced, with the regionals gaining parity and the Big fours’ lending beginning to balance out their deposit takings. By comparison, in the second half of 2010 the deposit to lending ratio for the big four was 1.12 while for the regional banks it was 0.84.
Deposit to Lending Ratios – The DFDI
Big 4 | Regionals | |
H2 2012 | 1.07 | 1.00 |
H2 2011 | 1.09 | 1.00 |
H2 2010 | 1.12 | 0.84 |
Source: East & Partners’ Deposit Funding & Debt Index
Further highlights of this monthly bank funding report include:
-
Business Deposit/Lending Volumes by Segment
-
Term versus On Call Deposits Volumes by Segment
-
Term Deposit Tenures
-
Business Churn Levels in On Call Deposits by Segment
-
Business Deposit Balances/Business Lending Balances
-
Total Deposit/Total Lending Market Share
-
Lending and Deposit Ratios
- Fully 30 individual banks covered each month
East & Partners’ Head of Client Development David Brown commented, "The
availability and cost of offshore funding over the past four years has been
severely stressed, forcing all banks to have a greater focus on domestic
funding. As competition between the banks reaches record highs, we have noted a
large jump in business utilising HYOD accounts. As businesses are now able to
shop daily for the best deals, interest rates are becoming a far greater factor
in the decision making process than the brand of bank".
About East & Partners’ Deposit Funding & Debt Index
A monthly analysis across Australia's total business and consumer deposit and
lending markets, enhancing data sourced from APRA. The ADI data is overlayed
with a set of demand-side analyses based on East & Partners’ continuous
whole-of-market customer research programs to produce the Index’s set of ratio
indicators. The Index focuses on critical market measures including business
versus retail deposit volume ratios, the ratio of deposit versus lending by bank
by market segment, deposit market share and the total market deposit funding
index.
Also reported each month are unique segmentations based on depositor size and,
importantly given BASEL III’s impact, the Index also splits On Call and HYOD
deposit volumes by segment from Term Deposits across 3, 6 and 12 month tenures –
hot and sticky deposit business flows, tied versus free deposit balances,
deposit churn forecasts and rate triggers for depositor switching.
Note: Business Depositor Segments:
› Institutional – A$530 million plus
› Corporate – A$20-530 million
› SME – A$5-20 million
› Micro – A$1-5 million
For more information or for further interview based insights from East &
Partners on this DFDI Index, please contact:
Sian Dowling
Marcomms & Client Services
East & Partners
t: 02 9004 7848
m: 0420 583 553
e: sian.d@eastandpartners.com