The term deposits that saved the world

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From Mark the Graph today comes this nice study of bank funding:

Today’s credit aggregates for March (table d03) include a number of data items on money with the banks. These funds are available to banks for making loans.

First we have current deposits with banks, which have been growing steadily. These are the everyday accounts that allow money to be deposited and withdrawn at any time.

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Next we have have certificates of deposits issued by banks. Growth in these instruments has been fairly steady since the onset of the GFC.


But growth in term deposits with banks has been dramatic since the onset of the GFC.

Other deposits with banks have grown at much the same rate since the GFC as before the GFC.


And finally, growth in offshore borrowings by all financial intermediaries has flat-lined since the GFC.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.