Banking deposits: back to double-digit growth

Summary

The nominal annual growth rate of traditional banking deposits (demand + term) in October 2014 was 12.4%, representing an increase of 3.5pp over the month before. This growth was driven by the acceleration in both components, demand and term deposits, whose contributions to traditional banking deposits came to 10.9pp and 1.5pp respectively (vs 8.6 and 0.3pp the month before). Thus, demand deposits accounted for 87.9% of the growth in traditional banking deposits (vs 96.6% the previous month), whereas term deposits represented 12.1% (vs 3.4% the previous month). The recovery in the rate of growth of traditional banking deposits may be a response to the relative improvement seen recently in economic activity, as reflected in the IGAE which in September reported an annual percentage variation of 2.9%, 1.7pp above the figure posted the month before. Similarly, the Industrial Activity Indicator reported a growth rate in September of 2.9% and in October of 2.1%, both figures higher than the 1.1% recorded in August

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