, Singapore

Here's why large Asian banks have been gaining market share

Current and savings accounts deposits increased 4.9%.

According to Barclays, the build-ups in CASA deposits emerged as one of the major factors behind deposit market share gains for large banks in Asia ex-China and Japan. Large banks have not only been holding higher CASA deposits vs. small banks but have also increased them over the years. 

Here's more from Barclays:

For 2003-2011, the large banks reported an average CASA ratio of 43.7%, expanding by 4.9% over the period (vs. 4.6% for small banks). The CASA build-ups for the large banks are aligned with their surge in deposit market share (4.9% vs. 1.1%).

Taiwan’s large banks reported the largest CASA ratio gains (+11.0%) during the period, followed by those in Singapore (+9.2%), Indonesia (+5.7%), Hong Kong (+4.6%) and Korea (+1.5%). Broadly, the relationship between increasing deposit market share and surging CASA can be witnessed in the following countries during 2003-11: 

 Singapore large banks: +11.3% market share increase vs. 9.2% CASA ratio gain.
 Korea large banks: +2.1% vs. 1.5% CASA ratio gain. Korean large banks hold the least CASA ratio in the region (~20%). The skew is driven by Woori and Hana, leading large Korean banks holding the least average CASA ratio in the industry: 9% and 6%, respectively.
 Taiwan large banks: +0.3% vs. 11% CASA ratio gain.

The CASA ratio for China large banks remained unchanged from 2003 levels, placed at 53% in 2011. Indian large banks have posted 2.6% fall in their CASA ratio as small banks clocked 7.4% gains during the period.

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